Thursday, May 25, 2017

MY 6th QUEST ABOUT GST THRESHOLD

Friends!
                Sub-clause (d) of clause (4) of article 279A of the Constitution of India requires that the Goods and Services Tax Council shall make recommendations to the Union and the States on the threshold limit of turnover below which goods and services may be exempted from goods and services tax.
                The Goods and Services Tax Council has submitted its recommendations in form of draft model GST Acts, recommendations in respect of which were also required to be made.
Meanings of word "Threshold" are:
doorway, entry point or Dehalij, देहली, प्रवेश द्वार,   दहलीज़,  देहरी,   डेवढ़ी,  चौखट,  दहलीज़
                In my opinion, intention, behind enactment of  aforesaid sub-clause (d) of clause (4), had been to provide exemption to small businessmen from compliance of goods and services tax. This has been done in view of the socio-economic complexities and cost of compliance of GST.
                MY QUEST IS: Whether there is any provision in the CGST Act, 2017 which satisfies the requirements of sub-clause (d) of clause (4) of article 279A of the Constitution?
MY answer is a big NO. Limit of aggregate turnover mentioned in sub-section (1) of section 22 of the CGST Act, 2017 is not the desired "threshold limit of turnover" because section 24 denies such limit of turnover in several specified cases. Section 24 fixes tax liability in cases in which turnover is below the limit provided in section 22(1). Sub-section (2) of section 22 includes those persons whose annual aggregate turnover, in period prior to appointed day, has been below twenty lakh rupees. Therefore, limit of turnover of twenty lakh rupees cannot be said entry gate or doorway to GST.
       भारत के संविधान के अनुच्छेद 279क  के खंड (4) का उपखण्ड (d) अपेक्षा करता है कि - माल और सेवा कर परिषद्, आवर्त की वह अवसीमा  जिसके नीचे माल और सेवाओं को माल और सेवा कर से छूट प्रदान की जा सकेगी, की शिफारिश संघ और राज्यों को करेगी। मेरे विचार से माल और सेवा कर परिषद् द्वारा आवर्त की किसी भी अवसीमा की शिफारिश नहीं की गयी है जबकि संविधान में परिषद् के लिए यह अनिवार्य निर्देश थे। संदर्भित खंड में "shall make recommendations" शब्दों का प्रयोग हुआ है।



No comments: