06-26-2004, 06:09 AM
Hello
The recent budget increased the threshold for sales tax registration to Rs 5mn for manufactures. For business already registered, who have less than this sale, is it mandatory to deregister or voluntary?
Also, would it really be good for business under 5m not registering for GST???
I mean, if they dont register, then they cannot claim any input tax and will have to absorb these costs. Even if their purchases are around 2.5mn, the GST claimable would be 375,000. Not registering means loosing this..
Is there something I am missing. Why is this increase in threshold being termed as helpful for the small business?
Thanks
Khizar
The recent budget increased the threshold for sales tax registration to Rs 5mn for manufactures. For business already registered, who have less than this sale, is it mandatory to deregister or voluntary?
Also, would it really be good for business under 5m not registering for GST???
I mean, if they dont register, then they cannot claim any input tax and will have to absorb these costs. Even if their purchases are around 2.5mn, the GST claimable would be 375,000. Not registering means loosing this..
Is there something I am missing. Why is this increase in threshold being termed as helpful for the small business?
Thanks
Khizar
