Indian Government Announcements. Government has announced that Tax is exempted for businesses with annual turnover of up to Rs 40 Lakh. Government extends validity of Motor Vehicle documents till Dec 31.
Indian Government Announcements -Tax exemptions
The Ministry of Finance yesterday said that businesses with an annual turnover of up to Rs 40 lakh are GST exempt. Initially, this limit was Rs 20 lakh. In a tweet, the Finance Ministry said, additionally those with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1 per cent tax.
It said, once GST was implemented, the tax rate on a large number of items was brought down. As of now, the 28 per cent rate is almost solely restricted to sin and luxury items. Out of a total of about 230 items in the 28 per cent slab, about 200 items have been shifted to lower slabs.
The Ministry also informed that significant reliefs have been extended to the construction sector. Particularly the housing sector which has been placed at the 5 per cent tax rate. GST on affordable housing has been reduced to 1 per cent.
It said that the taxpayer base has almost doubled since the rollout of GST. The numbers of assesse covered by the GST at the time of its inception were about 65 lakh and now the assesse base exceeds 1.24 crore.
Motor Vehicle Documents
The Road Transport and Highways Ministry has decided to extend the validity of Motor Vehicle documents till the 31st of December.
The Ministry had earlier issued advisories on 30th March and 9th June this year. Regarding extension of validity of the documents related to Motor Vehicles Act and Central Motor Vehicle Rules. It was advised that the validity of Fitness, Permit, License, Registration. Or any other concerned documents may be treated to be valid till 30th of September.
The decision was taken after considering the situation due to COVID-19 across the country. Enforcement authorities have been advised to treat such documents valid till 31st of December. This step is likely to help out the citizens in availing transport related services.