1. GST returns under composition scheme have a surprise, says Hasmukh Adhia

GST returns under composition scheme have a surprise, says Hasmukh Adhia

GST returns filed by companies opting for the GST composition scheme has left the government surprised as 5 lakh companies reported such a turnover which works out to annual sales of Rs 5 lakh only.

By: | New Delhi | Updated: February 6, 2018 2:50 PM
GST, GST council, GST returns, tax returns, GST composition scheme, GST return filing, GST regime, tax returns, income tax returns, GST network, GSTR, GST reforms, hasmukh adhia He said if the annual turnover of a company is Rs 5 lakh, why would it register under GST. (Express photo)

GST returns filed by companies opting for the GST composition scheme has left the government surprised as 5 lakh companies reported such a turnover which works out to annual sales of Rs 5 lakh only. Businesses with turnover up to Rs 20 lakh are exempt from the Goods and Services Tax (GST) regime, which kicked in from July 1, 2017. Out of 10 lakh businesses that opted for the composition scheme during the July-September period, about 7 lakh have filed GST returns for the quarter. “To our surprise, out of 7 lakh, 5 lakh people had filed such return for the quarter which results into annual turnover of less than Rs 5 lakh. Now we are wondering why did they register then? Up to Rs 20 lakh (annual turnover) there is no need to register in GST,” Finance Secretary Hasmukh Adhia said at an industry meet.

He said if the annual turnover of a company is Rs 5 lakh, why would it register under GST. “We didn’t know this statistics, when we increased the limit for availing composition scheme to Rs 1.5 crore. There is no need to do that,” Adhia said. The GST Council comprising the Centre and states in its November 2017 meeting increased the threshold for composition scheme to Rs 1.5 crore and also decided to amend the GST law to raise the statutory threshold to Rs 2 crore.

Till then the threshold for scheme was Rs 1 crore. Under the composition scheme, traders and manufacturers are allowed to pay taxes at a reduced rate of 1 per cent. While restaurant owners have to pay at 5 per cent rate. “5 lakh businesses showing less than Rs 5 lakh annual turnover. And the average of 7 lakh businesses, was coming to Rs 14 lakh (turnover),” Adhia said.

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  1. Ramaguru Prasad Jakkala
    Feb 7, 2018 at 2:13 pm
    All fraudsters. Once you get used to fraud it is very difficult to reform. If the government declares a limit all fraudsters will show income within those limits only. What did Mayawati do? She said she received all political donations in cash and under Rs. 2,000/-. It is easy for fraudsters if you upfront tell them how they can hide. Instead the government should only focus on compliance and ask everyone to file and pay taxes and after processing the returns it should decide what are all the small businesses which they want to exempt from paying taxes.
    Reply
    1. Sunilkumar Jaiswal
      Feb 6, 2018 at 3:29 pm
      It is observed many traders generate bills only for 50 amount 50 accept cash without bill. some traders generate the bills with very less price e.g. if whole price is 1000 they show it as 200-300 accept remaining in cash
      Reply

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