The Central GST Administration has adopted a policy of ‘soft nudge’ against non-registered GST assessees to bring them under the tax base. In one such campaign in an evasion-prone business locality of East Delhi, it managed to get 100 fresh registrations besides more than 2,000 queries from potential and unregistered traders.

“The government feels that soft nudging for registration would be a better approach than taking action on allegations of tax evasion,” a senior government official told businessline. The campaign took place on March 21-22 to engage unregistered manufacturers and traders in localities such as Gandhi Nagar, Old & New Seelampur, and Jaffrabad—areas in East Delhi known for garment and utensil businesses.

Registration under the GST Act is mandatory for businesses with a yearly turnover of more than ₹40 lakh (for goods) and ₹20 lakh (for services). The limit is ₹20 lakh and ₹10 lakh for goods and services, respectively, in special category States and UTs.

There is a composition scheme for small businesses. A taxpayer whose turnover is below ₹1.5 crore* can opt for the composition scheme. In the case of the Northeastern States and Himachal Pradesh, the limit is now ₹75 lakh.

As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of 10 per cent of turnover or ₹5 lakh, whichever is higher.

As of date, there are 1.5 crore taxpayers, but there is a possibility of many more being brought in.

The official quoted above also said that the department is mulling hand-holding for new registrants. “We are considering a mechanism to help new registrants ensure compliance with ease during the initial days,” he said.

Meanwhile, according to a Finance Ministry statement, during the campaign in East Delhi, more than 2,000 queries from traders were addressed by GST officers, who provided assistance with the registration process.

As part of the outreach efforts, 200 students from reputed universities were invited to be GST Ambassadors to create awareness during the two-day campaign. These volunteers/GST Ambassadors were closely monitored and guided by a large team of GST officers comprising 10 Assistant Commissioners/Deputy Commissioners and more than 80 officials.

The successful execution of this campaign marks a crucial step in increasing GST registration among the unorganised sectors, thereby improving compliance and contributing to the overall growth and stability of the Indian economy.

“The successful execution of this campaign marks a crucial step in increasing GST registration among the unorganised sectors, thereby improving compliance and contributing to the overall growth and stability of the Indian economy,” the statement said.

Source: The Hindu Business Line