Home / Business/ India offers tax sops to small businesses

India offers tax sops to small businesses


Comments / {{hitsCtrl.values.hits}} Views / Friday, 11 January 2019 00:00

Facebook

 


 

  • Doubles tax exemption limit for SMEs

New Delhi (Reuters): India’s government announced a change in national sales tax rules on Thursday that would exempt an additional two million small businesses, in a move that could help garner support ahead of a general election that must be called by May. 

“India will exempt small businesses with annual sales of up to 4 million rupees ($56,701) from paying taxes under the GST (Goods and Services Tax),” Finance Minister Arun Jaitley told reporters. 

A finance ministry official said the decision could benefit about two million firms. Currently, firms with an annual turnover of up to INR 2 million 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 state finance ministers. 

The decision comes after Prime Minister Narendra Modi 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. 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Tea with NM

Saturday, 20 July 2019

One of my most treasured memories is that of NM, better known as Dr. N.M. Perera. It was when I was a student in the UK that I first met him. NM was already a formidable left leader in Sri Lanka, an accomplished parliamentarian, a larger-than-life fi


Biosphere will one day be replaced by technosphere

Saturday, 20 July 2019

I am now nearly 90 and in my lifetime I have seen and heard the world changing so fast that homo sapiens (Latin: “wise man”), the species to which all modern human beings belong, are changing into a technology-dependent sub species, . Homo sapien


Expand employer-backed childcare to close the gender gap in Sri Lanka

Friday, 19 July 2019

In Sri Lanka, women’s formal workforce participation is at only 36%, compared with 75% for men. Sri Lanka could raise its gross domestic product by as much as 20% in the long-run by closing the gender gap in the workforce, according to one estimate


Who should be our next president?

Friday, 19 July 2019

After the recent terrorist attacks and the subsequent violence unleashed against innocent Muslims by racists, Sri Lankans are searching for a leader who can save the country. Many have lost faith in the leaders, due to the breakdown in the security a


Columnists More