With an eye on general elections, Government proposes relief for small businesses

Another panel, headed by Minister of State for Finance Shiv Pratap Shukla, recommended the council to allow dealers under the composition schemes to file GST returns annually but pay tax quarterly.

It also suggested that the composition scheme be extended to all service providers with an annual turnover of up to Rs 50 lakh. Currently, the composition scheme can be availed by manufacturers, traders and restaurant service providers.

The service providers will have to pay a flat GST of 5 percent and the panel was also of the view that the threshold for registering under the GST regime should be increased from Rs 20 lakh.

Delhi suggested that the exemption threshold should be kept at Rs 40 lakh, while Bihar recommended the limit at Rs 50 lakh.

The states had suggested the panel to allow taxpayers with an annual turnover of more than Rs 50-60 lakh to pay a fixed tax of Rs 5,000 a year, and businesses with annual turnover between Rs 60 lakh and Rs 75 lakh to pay a fixed tax of Rs 10,000-15,000 per annum.

Also, the group of ministers suggested that 1.5 crore dealers will be given free accounting software.

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