GST council set to close loopholes created by ‘Composition Scheme’
There have been reports that some business conglomerates are misusing the provisions of ‘Composition Scheme’ which is aimed at helping small business entities functioning in the country.
It seems that the authorities have identified this loophole created by one of their schemes related to the Goods and Services Tax.
In the twenty-third GST council meeting, which is going to take place at Guwahati today, the council members are likely to discuss the issue in details.
It is clear that the government is not interested to scrap the scheme which is benefitting small business entities, but it is likely to impose serious restrictions on the giant conglomerates which are clandestinely trying to leverage the benefits of this scheme.
The tax experts say that some big conglomerates have illegally fragmented their business entities in a way that each fragment stay under the threshold limit insisted by the composition scheme to avail the benefits.
At the same time, it is learned that the GST council meeting will liberalise the existing composition scheme in order to bring more small business entities under it.
As per the media report, the council may approve the plan to increase the threshold limit of GST from one crore Indian rupees to one and a half crore India rupees.
Vignesh. S. G
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