Kite fight between Taxpayer and Department
                     Kite fight between Taxpayer and Department
Using the festive metaphor of kite flying during Makar Sankranti, the dialogue explains how tax authorities 
increasingly control and monitor taxpayer compliance through technology-driven reforms. While taxpayers 
aspire to “fly their kites high,” the administration now holds the “chakri” by implementing automated 
systems and tighter controls. Key GST measures include faster automated registration for small taxpayers 
with limited monthly liability, locking of GSTR-3B Table 3.2 to prevent mismatches with outward supplies, 
and a simplified two-slab GST structure aimed at easing compliance. On the income tax side, revised 
MSME thresholds and expanded limits for small companies allow more businesses to qualify for regulatory 
relaxations and reduced compliance burdens. The overarching lesson is that regulatory winds now demand 
awareness, discipline, and lawful conduct. Taxpayers are advised to stay informed, comply with evolving 
rules, and avoid risky practices, as non-compliance can lead to penalties and self-inflicted harm in an 
increasingly data-driven tax environment.
Arjuna (Fictional Character): Krishna, Makar Sankranti is around the corner, and everyone are getting 
ready to fly their kites in the sky. From children to elderly, everyone is seen having fun flying their 
Kites. Krishna, how high do you think the Taxpayers Kite will fly this year? Krishna (Fictional 
Character): Arjuna, indeed excitement is seen in everyone’s eyes on Makar Sankranti. People wait 
whole year to enjoy this beautiful event with their friends and families. Also, you rightly said about 
the taxpayer’s wish to fly high their kites, but the flight of Taxpayers kite is actually controlled by 
the department by taking hold of the ‘Chakri’. With the use of technology, the department have 
obtained a firm grip on the ‘Chakri’ and the Taxpayers kite. Arjuna (Fictional Character): Krishna, 
how has the GST department fight the flight of GST kites flown by taxpayers? Krishna (Fictional 
Character): Arjuna, the GST department by use of technology have brought in various measures to 
control the flight of GST kites. Few measures adopted by the department to control the Taxpayers’ 
GST Kites are as below:
. Automated GST Registration for Small Taxpayers: As small kites are loved by small children to 
help small taxpayers a new automated GST registration process is implemented to benefit 
taxpayers with output tax liabilities up to ₹5 lakh per month. This registration will be provided 
within three working days, benefiting 96% of new applicants and allowing businesses to start 
their operations smoothly, and has given “Til Gul” to the small taxpayers. 2. Locking GSTR-3B 
Table 3.2: Just like fierce kite fight unfolds between two competitors, from November 2025, 
the GST Department will lock certain parts of GSTR-3B, particularly Table 3.2, which will now 
be auto-populated and cannot be manually changed. This change will help avoid 
discrepancies between GSTR-1 and GSTR-3B, making the filing process smoother and more 
accurate, just like the steady control of a kite’s flight with the right strings. 3. Introduction of 
GST 2.0: The new two-slab GST system replaces the previous four slabs, with 5% for essential 
items and 18% for others. This change is like a kite soaring effortlessly in the wind after being 
given “Dheel” (ease), allowing businesses to glide smoothly through the simplified tax 
structure.
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Arjuna (Fictional Character):  Krishna, how is government keeping check on the Taxpayers’ Kites? Krishna 
(Fictional Character): Arjuna, just like the GST department the other government departments has 
brought in various changes for keeping check on the flight of Income Tax Kites which are as follows: 1. 
Revised MSME Criteria: The thresholds for Micro, Small, and Medium Enterprises (MSMEs) have been 
updated, with investment limits of ₹5 crore, ₹25 crore, and ₹125 crore, and turnover limits of ₹10 
crore, ₹100 crore, and ₹500 crore. This allows more businesses to qualify for MSME benefits, reducing 
compliance burdens and providing smoother growth opportunities, like adjusting the height of a kite 
for a better flight. 2. Exemption Limits for Small Companies: The paid-up share capital limit has been 
increased from ₹4 crore to ₹10 crore, and the turnover limit has risen from ₹40 crore to ₹100 crore. 
This change lets more small companies benefit from reduced compliance requirements, avoiding 
“katakati” (cutting of Kites) under regulatory compliances. Arjuna (Fictional Character): Krishna, what 
should we learn from this? Krishna (Fictional Character): Arjuna, these changes are like the winds 
guiding a kite as they require understanding, preparation, and direction. The key lessons are to stay 
informed about the new GST and Income Tax changes. Flying kite with string coated with glass has 
threat of cutting hand, there may be scratch on hand. Therefore, the taxpayers should follow the rules. 
They should not take the law in hands. Else they may get in trouble and hurt themselves.
Read more at: https://taxguru.in/goods-and-service-tax/kite-fight-taxpayer-department.html
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