Finance ministry wants a threshold of Rs 25 lakh for GST: Rachna Nath
Rachna Nath, Partner and Leader Retail & Consumer, PwC India, answers questions on Budget expectations for the retail sector
What would be the threshold limit for GST?
- Raghuveer Kamath
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Rachna Nath, Partner and Leader Retail & Consumer, PwC India: The finance ministry had proposed a threshold limit of Rs 25 lakh for GST. Since states have a significant number of VAT dealers with turnover between Rs 10 to 25 lakh, the empowered committee of state finance ministers in its meeting in August 2014 recommended a threshold limit of Rs 10 lakh for general category states and a lower threshold of Rs 5 lakh for special category and North Eastern states.
According to the Finance ministry the Rs 10 lakh threshold limit for imposition of GST proposed by states is ‘too low’ for creating a business friendly tax administration. Therefore, it is consistently pushing for the higher threshold limit of Rs 25 lakh.
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First Published: Thu, February 05 2015. 18:38 IST