In order to enjoy the benefit of MSME, businesses have been reporting low turnover and under-reported investment sizes. The GST administration has found that many businesses have shown their annual turnover below 5 crore to show themselves within the threshold limit. To curb this practice, the Department has started sending notices to such businesses based on the tax department’s own computation of their annual turnovers. The government sources said a similar exercise could be in the offing, concerning the Rs 1.5 crorethreshold too.
