Industry urges government to raise GST Registration threshold limit from Rs.20 lakh to Rs.40 lakh

The Federation of Telangana Chambers of Commerce and Industry (FTCCI) recently hosted a city-wide conference on ‘GST and Globalisation’.

During the event, industry leaders urged the Chief Minister and State Finance Minister to consider increasing the GST registration threshold from Rs.20 lakh to Rs.40 lakh per year.

They contended that this decision would significantly benefit the region’s small and medium-sized enterprises (SMEs).

The president of the FTCCI welcomed participants to the conference and emphasised the need to fix the GST registration threshold. Despite earlier requests to the government, he stated that the issue had not been resolved. He emphasised the importance of this adjustment in strengthening the SME sector, which serves as the state’s economic backbone.

The industry organisation made a direct plea to the Chief Minister and State Finance Minister to seriously examine their representation. They stated that raising the threshold to Rs.40 lakh per year would reduce the compliance burden on many SMEs, allowing them to focus on business growth and development.

During the conclave, Justice Challa Kodandaram, a retired High Court Judge from unified Andhra Pradesh, presented his thoughts. He underlined the need for policymakers to take a practical approach to improving GST compliance. Justice Kodandaram emphasised the importance of realistic solutions that address the issues that businesses, particularly SMEs, confront when navigating the complex tax framework.

The FTCCI-organized conclave provided a venue for stakeholders to argue for policy reforms aimed at assisting Telangana’s SMEs.

The proposal to raise the GST registration threshold to Rs.40 lakh per year represents the industry’s collaborative efforts to overcome regulatory obstacles and support business growth.

Moving forward, it is anticipated that the government will heed these calls and establish policies that create a favourable climate for SMEs to thrive and contribute to the state’s economic prosperity.