The GST Council has approved for the simplification of the GST structure for micro-enterprises with gross turnover up to Rs 150 lakh.
The credit rating agency SMERA has welcomed the relief measures announced by the GST Council on October 6. The announcements will go a long way in providing relief to a large number of micro small and medium enterprises (MSMEs), it said.
The Council has given its go ahead for the simplification of the GST structure for micro-enterprises with gross turnover upto Rs 150 lakh.
The composite scheme for small businesses which was applicable for turnover upto Rs 75 lakh has now been extended for gross turnover upto Rs 100 lakh.
The composite scheme is the simplest of the GST scheme where the business entity pays a flat rate of tax ranging between 1-5 per cent, without having to deal with any complex tax filing process.
Further, businesses with turnover upto Rs. 150 lakh have now been allowed to file returns and pay GST on a quarterly basis instead on a monthly basis.
SMERA believes the compliance burden and its costs for small entrepreneurs and enterprises would reduce significantly.
Such a simplification of the taxation structure for small businesses will also lead to an increase in the taxpayers’ base and improve compliance, it said.
SMERA Ratings Limited is registered with the Securities and Exchange Board of India (Sebi) and accredited by Reserve Bank of India (RBI) as an external credit assessment institution (ECAI), for bank loan ratings under BASEL-II norms.
The MSME sector has been under pressure over the last few quarters with low capital availability and demand.
Source: Media reports