GST Exemption Threshold is now Rs 40 lakhs; Rs 50 lakh Composition Scheme for service providers approved
Published: Jan 10, 2019
By TIOL News Service
NEW DELHI, JAN 10, 2019: AT its 32nd meeting the GST Council today decided to enhance the GST Exemption threshold to Rs 40 lakhs from Rs 20 lakhs. For the Hill States it is going to be Rs 20 lakhs. However, the States have been given the choice to opt in or opt down. In other words, some Hill States may like to opt out of Rs 20 lakh limit and join the Rs 40 lakhs club and some normal States may opt down from Rs 40 lakhs to Rs 20 lakhs club. So, there are two thresholds which are to be chosen by the States within a week and send the intimation to the GST Council Secretariat so that the same could be notified.
For small service providers and also those who undertake mixed supply of goods and services, a new Composition Scheme has been approved with 6% tax rate with a threshold of Rs 50 lakhs.
For the existing Composition dealers, the threshold has been increased from Rs 1 Crore to Rs 1.5 Crore with effect from April 1, 2019. The Council has also extended the benefit of annual return-filing with quarterly tax payment to help the MSME sector.
On the issue of Calamity Cess the Union Finance Minister said that the Kerala has been authorised to levy 1% CESS on intra-State transactions for a period of two years.
On the issue of extending some relief to the real estate sector and also the tax rate on lottery, the Council has decided to set up two GoMs which would submit its report at the next meeting.