The success of any tax system lies in its simplicity rather than making it more complicated. GST was called as a ‘good and simple tax’ however, it complications and conditions in the threshold limit will lead to a ton of litigations in the coming days. The threshold limit was set as 20 lakhs for both goods and services but later on the threshold limit for goods was increased making it 40 lakhs. There are number of advance rulings asking clarification on whether a taxpayer is required to obtain registration under GST. There is an urgent requirement to simplify the threshold limit and more so for services. Till such time, the GST will continue to remain complicated.
GST threshold: Why does a law have to be so complicated that even tax officials interpret it differently?
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