The Union Finance Minister Nirmala Sitharaman chaired the 55th meeting of the GST Council today (21st December 2024) at Jaisalmer, Rajasthan.
During this meeting, the Council gave in-principle approval to a concept note for a simplified GST registration process, aimed at easing compliance for small businesses. This move is in line with the government’s ongoing efforts to promote ease of doing business and address challenges faced by smaller enterprises.
Small companies often struggle with registration complexities, such as determining the size of the business and understanding eligibility for Input Tax Credit (ITC). The concept note prepared for the GST Council outlines a streamlined registration process that addresses these issues, ensuring better clarity and ease for small businesses.
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However, the proposal is still in its early stages. A new registration process will require legal amendments, and the concept note must be reviewed before the GST Council approves the necessary changes. The details of the new process will be refined through discussions and consultations to address any challenges that may arise.
Once implemented, this simplified registration system could significantly enhance compliance rates and reduce the burden on small businesses. The streamlined process will contribute to the creation of a more inclusive tax ecosystem, empowering small enterprises to thrive. It aligns with the government’s vision of fostering a business-friendly environment and driving economic growth through the support of smaller businesses.
While the timeline for implementation depends on future consultations, the approval of the concept note is a key milestone in making the GST system more accessible to small businesses.
The meeting was attended by Union Minister of State for Finance, Shri Pankaj Chaudhary, Ajay Seth ( Revenue Secretary) along with Chief Ministers from Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha, and Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana.
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