Budget 2024: Small and medium businesses expect clarity, relief on GST
The Union Budget for the financial year 2024-25 may bring some relief on the minimum threshold, input tax credit and revision in GST rates on insurance products to make it easier to do business. However, Finance Minister Nirmala Sitharaman may avoid any major tinkering in the GST rates as she is going to present an interim budget in an election year.
The small and medium business owners expect some relief in the minimum threshold for Goods and Services Tax (GST) registration in this year’s Budget, which could prove to be a booster for small-scale suppliers.
Reduced compliance costs would help such suppliers to do business easily. GST registration is mandatory for units with a turnover of more than Rs 40 lakh (for goods and Rs 20 lakh for some special category states) and Rs 20 lakh for services.
An increase in the limit to Rs 50 lakh would be a breather for such small units while the industry is also hoping for some clarity on GST registration necessity for export-focused businesses in the Union Budget to be presented on February 1.
Exporters are also expecting an announcement of simplification of the input tax credit (ITC) process in the budget this year. While the RBI and the Foreign Exchange Management Act have done away with the requirement for Foreign Inward Remittance Certificate (FIRC), exporters need to submit these certificates under the GST regime.
