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GST Council gave big relief to small business

New Delhi: In a bid to give relief to small businesses, the central government on Thursday announced a change in the Goods and Services Tax (GST) rules raising the limit of registration for GST for private business establishments.

32nd GST Council Meet

The various decision made in the meeting are:

  • The exemption limit under the GST regime has been extended to Rs 40 lakh from Rs 20 lakh. For small and hilly states the Rs 10 lakh limit has been extended to Rs 20 lakh.
  • Kerala can now impose a maximum calamity cess of 1 % for two years on intra- state sales.
  • Composition limit will be increased to 1.5 crore from April 1, 2019. The composition scheme can be availed by the service providers and those who provide mixed supplies of goods and services with a turnover upto Rs 1.5 crore lakh in the informal sector.

"The government has increased the turnover limit for the existing composition scheme, wherein small businesses with annual sales of up to Rs. 40 lakh will be exempted from paying taxes under the GST,"
Finance Minister Arun Jaitley said while addressing media after the 32nd meeting of the GST Council held in the national capital.

Mr Jaitley said the twin move would give relief to micro, small and medium enterprises (MSMEs).

Currently, firms with an annual turnover of up to Rs. 20 lakh are exempted from registration for GST. The change will come into effect in April.

The government also doubled the GST exemption limit from existing Rs 10 lakh to Rs 20 lakh for northeastern states, the finance ministerannounced.

The minister said the scope of GST Composition Scheme, under which small traders and businesses pay a small tax based on turnover rather than value addition is raised to Rs 1.5 crore from Rs 1 crore.

On being asked if government was doing something to put cement from higher tax category to a lower one as was suggested hinted after the previous GST council meet in December last year, the minister said the government would certainly consider it in future.
Read more:Electric mobility to promote manufacturing, generate jobs: Arun Jaitley



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