The Centre’s move to allow companies under composition scheme to file GST returns annually will improve ease of doing business for small textile companies, according to the Cotton Textiles Export Promotion Council.
The GST Council on Thursday raised the existing Composition Scheme turnover threshold from Rs. 1 crore to Rs. 1.5 crore effective from April 1.
Companies under the scheme will now pay tax on a quarterly basis but returns will have to be filed annually, said KV Srinivasan, Chairman, Texprocil. The expansion of the Composition Scheme has come as relief to a large number of small tax payers who are not in a position to file returns on time, he added.
The increase in GST exemption threshold limit
will help small and medium-sized businesses and will encourage growth in the struggling textiles sector, he said.