How Does Aggregate Turnover Affect the Status Quo
It’s been highly anticipated that GST is going to expand the taxpayer base in India. The concept of aggregate turnover may also attract businesses which otherwise may not be genuinely required to register. This has been a concern for a while, however, the government is reluctant to make any change in existing provisions.
It is important to note that just by registering, the exempt businesses will not have to pay taxes. But registering will mean that they will have to file mandatory returns and follow all other compliances.
As a business you may not have attracted the interest of tax authorities up till now, but the GST Law gives authorities the power to inspect and compel small businesses to register under GST. This will definitely increase the cost of compliance for small business in the short term. In the long run, though this could prove to be a good thing. The data thus collected may help the government come up with better policies for small businesses in the future.
