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GST Council doubles exemption limit to Rs. 40 lakh in major relief to MSMEs

 
GST Council raises composition scheme limit to Rs 1.5 crore: Jaitley
The Goods and Service Tax (GST) Council today decided on major steps to give relief to the Medium, Small and Micro Enterprises (MSME) sector, including small traders, including an increase in the turnover limit for the existing Composition Scheme and a doubling of the exemption limit.
 
In its 32nd meeting held here under the chairmanship of Union Finance Minister Arun Jaitley, the Council increased the annual turnover limit in the preceding financial year for the existing Composition Scheme to Rs. 1.5 crore.
 
Special category States would decide, within one week, about the Composition Limit in their respective States, an official press release said.
 
The compliance under Composition Scheme shall be simplified as now they would need to file one annual return but payment of taxes would remain quarterly (along with a simple declaration), it said.
 
The Council decided on higher exemption limits for suppliers of goods. There would be two threshold limits for exemption from Registration and Payment of GST for the suppliers of goods -- Rs 40 lakhs and Rs 20 lakhs. 
 
States would have the option to decide about one of the limits within a week's time. The threshold for Registration for Service Providers would continue to be Rs 20 lakhs and in case of Special Category States at Rs 10 lakhs.
 
A Composition Scheme shall be made available for suppliers of services (or mixed suppliers) with a tax rate of 6% (3% CGST +3% SGST) having an annual turnover in the preceding financial year up to Rs 50 lakhs.
 
The scheme shall be applicable to both service providers as well as suppliers of goods and services, who are not eligible for the presently available Composition Scheme for Goods.
 
They would be liable to file one annual return with quarterly payment of taxes (along with a simple declaration).
 
These decisions shall be made operational from April 1, 2019, the release said.
 
Free accounting and billing software shall be provided to small taxpayers by GSTN, it said.
 
The release said a seven-member Group of Ministers shall be constituted to examine the proposal of giving a Composition Scheme to boost the residential segment of the real estate sector.
 
A Group of Ministers shall be constituted to examine the GST Rate Structure on Lotteries.
 
On revenue mobilisation for natural calamities, the Council approved levy of cess on intra-state supply of goods and services within the state of Kerala at a rate not exceeding 1% for a period not exceeding two years.
 
NNN

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