Today, the government of India has announced a change in the GST (Goods and Services Tax) rules that would exempt an additional two million small business, in a move that could support the garner help before the 2019 General elections is scheduled on May.
Finance Minister Arun Jaitley told sources that “India will exempt small businesses with annual sales of up to Rs. 40 lakh ($56,701) from paying taxes under the GST.”
An official of Mr. Jaitley said that the decision could be advantageous about two million small scale firms with an annual turnover of up to 20 lakh are exempted from registration for GST. The changes will be effective from April.
The Finance Minister made the announcement after a meeting of the GST Council, comprising of state and central finance ministers.
The decision came after PM Modi said that the government of India was planning to simply the GST rules, which was introduced first in July 2017 with the object to replace more than a number of state and central levies.
The introduction of GST improved economic efficiency and is assisting to unify the nation’s sprawling domestic market but small firms say the complexities of the new system have driven many of them out of forced and business hundreds of thousand out of a job.