GST Update - Decisions taken by GST Council in its 32 Meeting on 10.01.2019
The GST Council in its 32nd Meeting held in New Delhi took the following major decisions to give relief to MSME (including Small Traders) among others :-
1. Increase Exemption Threshold Limit for Supplier of Goods for registration:-
With effect from the 1st of April, 2019 there would be two threshold Limits for exemption from Registration and Payment of GST for the suppliers of Goods i.e. Rs 40 lakhs and Rs 20 lakhs. In other words the threshold limit for GST registration has been raised from Rs. 20 lakhs to Rs. 40 lakhs. The States now have the power to decide between Rs. 20 lakhs and Rs. 40 lakhs as the GST exemption limit for the supply of Goods, 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.
2. Increase in Turnover Limit for the existing Composition Scheme
With effect from the 1st of April, 2019 the limit of Annual Turnover in the preceding financial year for availing Composition Scheme for Goods shall be increased from 1 crore to Rs 1.5 crore. The special category state would have to decide the composition limit in their respective states within one week whether to accept the new amendment or not.
3. Composition Scheme for Services
With effect from the 1st of April, 2019 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 said Scheme Shall is 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.
4. Compliance simplification under composition scheme
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).
5. Revenue mobilisation for natural calamities in the State of Kerala
The Cess shall be levied @ 1% on the intra state supply of goods and services within the state of Kerala for a period not exceeding 2 years.
6. Matters referred to Group of Ministers:
i. 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.
ii. A Group of Ministers shall be constituted to examine the GST Rate Structure on Lotteries.
Composition Scheme to Boost the Residential Segment of the Real Estate Sector.
ii. A Group of Ministers shall be constituted to examine the GST Rate Structure on Lotteries.
