The Law Committee associated with the GST Council has green lighted the exemption, but the council is yet to approve it
The Goods and Services (GST) Council may exempt small assessees from filing returns for FY18, reports BusinessLine. The Council, which will be meeting on September 20, will decide whether to grant an exemption only for 2017-18 or for 2018-19 as well, sources told the publication.
Small businesses, or those with turnover of up to Rs 5 crore, are classified as small assessees.
The Law Committee associated with the GST Council has green lighted the exemption, but the council is yet to approve it.
Moneycontrol could not independently verify the news.
At present, there are a total of 1.39 crore GST assessees, of which 86 percent have an annual turnover of Rs 2 crore or less. If businesses with annual revenue of Rs 2-5 crore are taken into account, then 92 percent assessees will be covered.
Businesses are required to file their returns through the GSTR9 forms. The current deadline for filing FY18 returns has been extended to November 30 from August 31.While the move is expected to provide relief to small businesses, it might also impact the revenue distribution to states “to the extent of unreported ineligible tax credits,” the article quotes Rajat Mohan of AMRG as saying.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.