The Centre and states have agreed on annual turnover threshold of Rs 2.5 million for Goods & Services Tax (GST). This means businesses with annual turnover less than Rs 2.5 million would be kept out of the GST purview. It has been decided that tax payers with annual turnover of over Rs 15 million would be taxed by the Centre, which will later disburse to states their share.
Similarly, those below Rs. 15 million turnover would deposit their taxes to states, which would subsequently pass on to the Centre its share. Also, there would be a composition scheme( presumptive tax) for dealers with annual turnover of up to Rs 6 million. A dealer could opt for a compounded levy of one per cent on taxable turnover, instead of paying GST at the standard rate; but he would lose the right to claim tax credit for these.
