Nov 20, 2020
GST compliance to hit micro firms soon
Micro-enterprises will soon begin to feel the heat of the government’s tax enforcement drive, with key compliance measures now covering larger businesses becoming applicable to them over the next few months.
From December, firms with sales below rs5 crore—defined as micro firms—will not be able to generate an electronic permit (e-way bill) for goods transportation if they have defaulted on filing return forms for two consecutive tax periods.
The National Informatics Centre, which runs the portal for generating e-way bills, said it will activate this feature for all firms from 1 December irrespective of their turnover. From 15 October, this compliance rule has been applicable for bigger businesses.