Centre, states propose easy GST scheme for small traders

Traders and businesses above a specified annual turnover will have to get a unique identification number for collecting goods and services tax (GST) from consumers, while those with lesser annual sales can get a GST registration voluntarily if they want to seek credit for the taxes previously paid, according to a report on GST business process released by the government.

The report on GST registration prepared by Union and state officials has also proposed a compounding scheme for small traders who are marginally above the turnover threshold for registration. They will be allowed to pay tax at a rate lower than the standard rate of GST on their annual turnover, but will not get any credit for the taxes previously paid.

Traders with inter-state transactions will have to compulsorily obtain GST registration even if their turnover is below the specified threshold, says the report.

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Although the report does not specify the turnover threshold for registration, officials have tentatively kept it at Rs 10 lakh. Those in the Rs 10-50 lakh turnover range will be eligible for the lower GST rate under the scheme, under the consensus among Union and state government officials. FE