Small businesses beware! According to sources, the new provisions in GST laws give sweeping investigative powers over small businesses. Speaking with ET Now the sources revealed, “New provisions in GST laws gives investigative powers over small businesses outside the tax net”.
“GST laws propose to tax non-registered businesses from which GST registered business buy,” they added. They further said that the draft proposes tax officials to have power to question business below GST threshold.
Earlier this week, Economic Affairs Secretary Shaktikanta Das said that GST will be implemented from July 1, 2017. Speaking to reporters, Das said that GST will be a reality soon as all states were on board and this, in turn, will unleash the growth potential of the economy.
The GST, which will replace a myriad of consumption taxes, could be a “game-changer” over the medium term as it would reduce tax cascading and boost India’s competitiveness, investment and job creation. “GST is going to unleash a huge quantum of growth impulses. The effect will be felt and once India becomes one market, there will be a positive impact on growth impulses,” Das said.
Last week, Chief Economic Advisor Arvind Subramanian revealed that internal trade has drastically improved; this being a boon to the country’s progress in the wake of GST. The GST is expected to bring about reduced tax exemption, which could have a bearing on prices of goods and capital requirement for managing cross-border supply chains. It will also mean reduced duty benefit claimed on imports and reduced export incentives and drawback on exports, experts said.