You are here: Home » Reuters » News
Business Standard

Government offers tax sops under GST to small businesses ahead of election

Reuters  |  NEW DELHI 

By Kumar and Ahmed

NEW DELHI (Reuters) - The government announced a change in the Goods and Services Tax (GST) rules on Thursday that would exempt an additional two million small businesses, in a move that could help garner support ahead of a that must be called by May.

"will exempt small businesses with annual sales of up to 4 million rupees ($56,701) from paying taxes under the GST," told reporters.

A said the decision could benefit about two million firms. Currently, firms with an annual turnover of up to 2 million rupees are exempted from registration for GST. The change will come into effect in April.

Jaitley made the announcement after a meeting of the GST Council, comprising federal and

The decision comes after said the government was planning to simplify the GST, first introduced in July 2017 with the aim of replacing more than a dozen federal and state levies.

The introduction of a national sales tax improved economic efficiency and is helping to unify India's sprawling domestic market, but small businesses say the complexities of the new system have driven many of them out of business and forced hundreds of thousands out of a job.

($1 = 70.5450 Indian rupees)

(Reporting by Ahmed and Kumar; Editing by Simon Cameron-Moore)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 17:00 IST
RECOMMENDED FOR YOU