Interim Budget 2024: Enhance GST Registration Threshold To Rs 40 Lakh From Rs 20 Lakh

New Delhi: Interim Budget 2024 will not see any major announcements from Finance Minister Nirmala Sitharaman. However, experts and analysts are hoping that the government may come up with disclosures for ease of doing business.

"With GST collections showing a healthy growth, the government may consider raising the threshold for GST registration to Rs 40 lakh from the current Rs 20 lakh. Further, while the GST Council proposed to make ISD mandatory for disbursal of credit, we have therefore taken the relevant GST Laws may see changes. Further, on the customs front, there is a dire need to digitize the process for verification of Certificate of Origin under FTAs/PTAs which will save time and effort for importers claiming benefits under FTAs/PTAs," Ankur Gupta, Practice Leader - SW Indirect Taxation of India said.

Srivatsan Sridhar, founder and CEO of Skydo, said businesses that are purely export-oriented need clear guidance on the requirement of GST registration considering their supplies zero-rated.

"Another major expectation is to simplify the Input Tax Credit (ITC) refund process for exporters. The current disparity between the documentation requirements of the Foreign Exchange Management Act (FEMA) and GST is a significant hurdle," Sridhar added.