GST - GoM recommends Rs 50 lakh treshold with 5% levy for small service providers
Published: Jan 07, 2019
NEW DELHI, JAN 07, 2019: SUNDAY was a day of two crucial meetings by the GoMs on CESS and MSMEs. The GoM on Calamity Cess as requested by Kerala has recommended to the GST Council that Kerala may be allowed to impose one per cent CESS on the SGST component only for a period of two years. In his tweet, the GoM Chairman, Mr Sushil Modi, has stated that any States keen to collect such revenue is required to seek a fresh mandate from the Council.
The second GoM on MSME which was also given the task of deciding a new exemption threshold could not reach a consensus as many State Finance Ministers suggested different thresholds with different tax rates. So, the issue will finally be decided by the Council at its January 10th meeting. However, it may range between Rs 45 lakh to Rs 70 lakh.
Besides the threshold, the GoM also debated and decided that the threshold for the Composition scheme may be raised to Rs 1.5 crore with the ease of annual return filing. However, the tax payment system must continue to be quarterly so that the revenue is collected. For small service providers it has also recommended a new composition scheme of Rs 50 lakhs with 5% tax rate. The GoM has also recommended that a billing software may be provided to small traders for uniformity in billing process.