GST Impact: Small businesses could under-report income initially

When the nationwide goods and service  tax  rolls out on July 1, it is likely that micro and small enterprises will under-report their yearly income. Firms might do so to stay in the Rs 20-50 lakh bracket so that a low  tax  rate of 1-2 per cent applies to them. Increased compliance under  GST  will benefit firms in the long run by providing them access to cheaper cap…