GST Council meet: Relief for small businesses as exemption limit doubled; key things to know

By: |
Updated: January 10, 2019 3:46:45 PM

Finance Minister Arun Jaitley on Thursday said that the GST Council has increased the turnover limit for businesses availing composition scheme to Rs 1.5 crore from Rs 1 crore at present starting April 1, 2019.

GST Council Meeting, GST, Bike, Two Wheeler, Petrol, Diesel, Energy, Tax Slab Change In GST, Tax Reduce, जीएसटी काउंसिलGST Council Meeting: In its last meeting, the GST Council had cut tax rates on seven items previously placed in the highest tax slab.

Finance Minister Arun Jaitley on Thursday said that the GST Council has decided to double the GST exemption limit to Rs 20 lakh for north eastern states and Rs 40 lakh for the rest of the country providing relief to small businesses. The turnover limit for businesses availing composition scheme has also been increased to Rs 1.5 crore from Rs 1 crore at present starting April 1, 2019. The GST Council has also approved the annual return and quarterly tax payment under the composition scheme, he added.

Besides this, those providing services and both Goods and Services with turnover up to Rs 50 lakh will be entitled to avail composition scheme, Finance Minister said after conclusion of 32nd GST Council meeting held earlier today.

The GST exemption threshold has also been hiked from Rs 20 lakh to Rs 40 lakh and the rate for services under composition scheme has now been fixed at 6 percent which is lower than service tax and GST paid previously. The council has also allowed Kerala to levy 1 per cent calamity cess on intra-state sales for a period of up to two years.

The economy is now seeing improvced response to GST compositioon scheme, Arun Jaitley  said.  He also said that the council will consider further reduction in rates only when revenues move up.

Also read: Bandhan Bank Q3 results: Private lender’s profit rises 10%, asset quality worsens; key highlights

In its last meeting, the GST Council had cut tax rates on seven items previously placed in the highest tax slab. Rationalising the 28 per cent tax slab, the council had pruned the GST rates on six items to 18 per cent slab and one item to five per cent slab. In total, the panel had reduced rates on 23 goods and services.

After its last meeting in December, the Council had expressed concern over the lack of smaller service providers not opting for GST registration, which was attributed to relatively higher tax rate of 18% and cumbersome compliance.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Trade wars: US pushes China on promises after `in-depth’ trade meetings
2Pulses and Oilseeds: Nafed buy may drop by a third
3Uday scheme: Modi government may miss target due to states’ non-compliance