Small traders in Assam exempted from GST registration
It can never be contradicted that GST is not only a consumer-friendly tax reform, it is also the most adaptable tax mechanism. Very notably, the provisions under the Goods & Service Tax, India as regards have been amended repeatedly in various previous GST council meeting.
One such significant decision was taken by the GST council in its 28th meeting that had taken place on 21st July 2018. The council had put forward several amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act. Many noteworthy reforms in respect of GST registration were brought forward.
However, the most striking update was that the threshold limit for new GST registration in the North-Eastern States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand has now been increased from â‚¹10 Lakhs to â‚¹20 Lakhs. In this regard, the State Government has recently taken the final step towards relieving small-scale traders from the requirement of GST registration.
The State legislative assembly of Assam on October 3, 2018 had confirmed the modifications in the GST registration procedure by enacting the Assam Goods and Services Tax (Amendment) Bill, 2018.
As per the new or modified act, the threshold limit of annual turnover for mandatory GST registration has been raised to â‚¹20 Lakhs from the earlier â‚¹10 Lakhs.
What does the Assam Government think about the new amendment in the GST law?
The Finance Minister of Assam Dr Himanta Biswa Sharma has quoted-
"The amendment in the GST slab rate would considerably and substantially benefit the small traders of the state. Besides the state governments of Meghalaya and Nagaland had also got the approval from the GST Council after its 28th meeting for raising the threshold cap to â‚¹20 Lakhs.
The North Eastern states were formerly clubbed together in the â‚¹10 lakh bracket. The majority of businesses are within this threshold cap. Now, pushing up the limit to â‚¹20 Lakhs would deprive the state government of considerable revenues for a short span, the gap will be filled soon with the steady increase in GST compliance by all traders."