NEW DELHI: The government suspects that its composition scheme meant to ease lifestyles for small businesses is being misused with the common quarterly turnover estimated at Rs 2 lakh. For July-September, around 10 lakh entities had opted for the composition scheme for GST — where only the turnover main points should be disclosed and tax is paid at a flat price. Of those, around 6 lakh filed returns until December 25.
But the entire amount mopped up from those entities for the three-month period added up to Rs 251crore, translating into an annual turnover of Rs eight lakh.
The number has taken the government machinery via marvel as the threshold for registering for GST is an annual turnover of Rs 20 lakh. With registrations on the rise, now around 15 lakh entities are registered for the composition scheme. But officers worry that as a result of a couple of relaxations, there was leakage of tax revenue from the gadget.
"We were planning to increase the ceiling above the currently prescribed Rs 1 crore. Now we are wondering if there is a need to do so if the average declaration shows turnover of Rs 8 lakh a year," stated an authentic, who did not want to be known. In November, the GST Council had proposed to raise the cap to Rs 1.five crore.
The startling numbers have also prompted the finance ministry brass to test the scheme for cost of presumptive tax below source of revenue tax, where the restrict used to be doubled to an annual source of revenue of Rs 2 crore. The numbers estimate the common annual source of revenue at Rs 18 lakh, which again officers believe is a result of under-reporting via those that are eligible to go for it.
The rapid worry, then again, is GST, where aspects like bill matching, opposite charge and e-way bills were put on the back burner as there used to be an uproar of sorts against the brand new regime that sought to plug leakage of presidency revenue. While the government will roll out eway bills subsequent month and make it mandatory from February to trace consignments shifting in trucks, the GST Council will come to a decision on the reintroduction of the 2 different tools when it meets on January 18.
But the entire amount mopped up from those entities for the three-month period added up to Rs 251crore, translating into an annual turnover of Rs eight lakh.
The number has taken the government machinery via marvel as the threshold for registering for GST is an annual turnover of Rs 20 lakh. With registrations on the rise, now around 15 lakh entities are registered for the composition scheme. But officers worry that as a result of a couple of relaxations, there was leakage of tax revenue from the gadget.
"We were planning to increase the ceiling above the currently prescribed Rs 1 crore. Now we are wondering if there is a need to do so if the average declaration shows turnover of Rs 8 lakh a year," stated an authentic, who did not want to be known. In November, the GST Council had proposed to raise the cap to Rs 1.five crore.
The startling numbers have also prompted the finance ministry brass to test the scheme for cost of presumptive tax below source of revenue tax, where the restrict used to be doubled to an annual source of revenue of Rs 2 crore. The numbers estimate the common annual source of revenue at Rs 18 lakh, which again officers believe is a result of under-reporting via those that are eligible to go for it.
The rapid worry, then again, is GST, where aspects like bill matching, opposite charge and e-way bills were put on the back burner as there used to be an uproar of sorts against the brand new regime that sought to plug leakage of presidency revenue. While the government will roll out eway bills subsequent month and make it mandatory from February to trace consignments shifting in trucks, the GST Council will come to a decision on the reintroduction of the 2 different tools when it meets on January 18.
Government suspects GST leakage via SME scheme
![Government suspects GST leakage via SME scheme]()
Reviewed by Kailash
on
January 01, 2018
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