Relief for 2 mn small businesses as GST exemption doubled to Rs 40 lakh


new delhi: In its 32nd meeting, the GST Council agreed to raise the composition scheme limit to 1.5 crores, union finance minister Arun Jaitley informed. The new limit will be effective from April 1, 2019.
"Those who come under the composition scheme will pay tax quarterly, but the return will be filed only once a year. Council approved composition scheme for Services," Jaitley said.
The council has also increased the exemption limit for GST for those with a turnover up to Rs 20 lakh to Rs 40 lakh.
1. Composition scheme threshold raised to Rs 1.5 crore from April 1
2. Under service tax scheme, there was no composition scheme. In services Rs 50 lakhs eligible for services.
The composition rate is approved to be 6%, which is lower than average tax being paid by those under the Rs 50-lakh limit.
3. Businesses availing GST Composition Scheme to file just one annual return, pay taxes once every quarter
4. Two types of exemption limit now: i) Turnover of Rs 40 lakh for those earlier in Rs 20-lakh bracket ii) Turnover of Rs 20 lakh for those earlier in Rs 10 lakh bracket. This will help more than 2 million small businesses, according to the revenue secretary
5. GST Council allows Kerala to impose 1 per cent cess on intra-state sales for up to 2 years
6. Group of Ministers constituted to consider GST on real estate, lottery after differences of opinion in GST Council
The council has allowed the state of Kerala to impose a cess of up to 1 per cent on intrastate sales for two years, FM Arun Jaitley said.
Jaitley further informed that the GST composition limit for services is now set at Rs 50 lakh.
"Services and goods providers will get the benefit of composition tax", Jaitley assured.
"A committee has been set up to consider real estate GST rates," the finance minister informed.
He further added, "The GST Council will mull further rate cut only if revenue will increase".
Meanwhile, Sushil Kumar Modi targeting Congress said that the Congress ruled states are opposing every move of Council giving relief to MSME & small traders.
Earlier, trader's body Confederation of All India Traders (CAIT), in a letter sent to the Union Finance Minister Arun Jaitley on Wednesday, suggested to levy "three-stage" GST instead of the current multi-stage tax system.
The CAIT said the taxes subsumed in value of the goods will encourage consumers to obtain Bills, which will augment the revenue.
"The efforts of the government to simplify and rationalise the tax structure is appreciable. But at the same time, the dip in the revenue collection is a matter of concern.
Therefore, a mechanism is needed for easy collection of taxes by the traders and also more revenue could be generated," it said.

Share This Story

Comment On This Story


Photo Gallery

BSE Sensex
NSE Nifty