more-inThe twenty-third meeting of the Goods and Services Tax (GST) Council in Guwahati on Friday is set to tighten the noose on players who, authorities believe, have started splitting their business operations into smaller entities to avoid higher tax liabilities. The Council is expected to further liberalise the Composition Scheme for small businesses and traders to pay a flat and low tax on their turnover. Parallel economyHowever, the government is concerned about the emergence of a parallel economy despite the restrictions on the Composition Scheme, whose original threshold limit was just ₹75 lakh a year. “We understand that businesses are getting fragmented to take advantage of the Composition Scheme. The GST Council, where States and the Centre have so far resolved issues by consensus, will have several knotty questions on its plate.

Source: The Hindu November 09, 2017 18:45 UTC