BIG NEWS: Raising GST registration threshold from ₹40 lakh to ₹60 lakh may be considered by GST Council says FM Nirmala Sitharaman

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Finance Minister Nirmala Sitharaman on Wednesday said the request from Parliamentarians to raise the sales threshold for Goods and Services Tax (GST) registration can be looked into by the GST Council; however, she added that most small businesses ideally should be part of the GST chain.

While replying to a discussion on the Central Goods and Services Tax (Second Amendment) Bill, 2023 in Rajya Sabha, Sitharaman also took note of the requests from Parliamentarians for setting up a national appellate authority for advance ruling as provided for in GST law.

The appellate authority for advance ruling is something the trade would love to have, the minister said, adding, “We recognize the concern of the member.”

In response to suggestions from Parliamentarians about inclusion of petrol and diesel in GST, the minister said, “I wish state governments see the point.”

Raising GST registration threshold from ₹40 lakh to ₹60 lakh may be a good suggestion, the minister said. “I leave it to the Council to decide but it is also equally true that most small firms should also ideally come on board,” the minister said.

Sitharaman explained that amendments to GST law are now proposed in order to align the GST appellate tribunal in conformity with the tribunals reform of 2021 and a Madras high court decision.

The minister explained that there has been consistent growth in the monthly GST return filing which has now reached 90% compliance as against 71% three years ago.

The Central GST (Second Amendment) Bill, 2023—returned by Rajya Sabha on Wednesday— seeks to expand the pool of candidates for appointment of judicial members to the tribunal.

The amendments propose a minimum age of 50 years for eligibility for appointment as President and Members. The President and Members will have tenure up to a maximum age of 70 years and 67 years respectively.

The Provisional Collection of Taxes Bill, 2023 which was also returned by the Rajya Sabha on Wednesday replaces a law by the same name enacted in 1931. This Bill allows the government to give immediate effect to customs and excise duty changes proposed in the Finance Bills from the next day onwards without having to wait for the Bills’ passage.

Source from: https://www.livemint.com/news/india/gst-council-can-vet-pleas-on-gst-registration-threshold-finance-minister-11703096190162.html

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