Afternoon D & C Dedicated To Mumbai
Home > Business > Relief to small businesses: GST exemption limit doubled to Rs 40 L

Relief to small businesses: GST exemption limit doubled to Rs 40 L

Friday, January 11, 2019

In a bid to give relief to small businesses, the GST Council yesterday doubled the limit for exemption from payment of goods and services tax (GST) to Rs 40 lakh and announced that the higher turnover cap of Rs 1.5 crore for availing composition scheme of paying 1% tax will be effective from April 1.

The Council also allowed Kerala to levy a 1% calamity cess on intra-state sale of goods and services for a period of up to two years to mobilise revenues to meet the cost of rehabilitating parts of states that were ravaged by floods last year.

Finance Minister Arun Jaitley said the taxpayers with an aggregate turnover of Rs 40 lakh would now be exempted from the GST. For the north eastern states, the exemption would now be Rs 20 lakh. Currently, businesses with a turnover of up to Rs 20 lakh is exempt from GST registration, while the limit for hilly and north eastern states is Rs 10 lakh.

Sources said the annual revenue loss on account of doubling exemption limit to Rs 40 lakh, considering that all states implement it, is Rs 5,200 crore.

Jaitley said the GST Composition Scheme, under which small traders and businesses pay a 1% tax based on turnover, can be availed by businesses with a turnover of Rs 1.5 crore, against the earlier Rs 1 crore, with effect from April 1.

Also, service providers and suppliers of both goods and services up to a turnover of Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6%.

The twin decision under the composition scheme would have an annual revenue impact of about Rs 3,000 crore.

Jaitley said these decisions would give a relief to micro, small and medium enterprises (MSMEs).

On GST rate for real estate, the council has decided for form a seven-member group of ministers after differences of opinion emerged at the meeting, he said, adding there were diverse views on lottery. A ministerial panel will look into it as well.

Jaitley said those opting for the composition scheme would have to file just one tax return annually but pay taxes once every quarter.

"A very large part of GST comes from formal sector and large companies. Each one of these decisions is intended to help the SMEs. You have given them various options. If they are in services sector, they can get 6% compounding, if they are in manufacturing and trading up to Rs 1.5 crore they can get 1% compounding. They can make use of exemption of up to Rs 40 lakh," he said.

No Comments Posted
City news
RTI activist has written a letter to Chief ...
A 40-year-old woman has been arrested by Agripada
Standing in solidarity against the recent brutal
I am Sheetal (age 24). Me and my boyfriend have b
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Select Sun sign:
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)You are likely to remain careful and watchful today, foretells Ganesha. And because you'll be invited to parties and other social events, your enthusiasm will remain buoyant. You will also strike the right balance between business and pleasure, says Ganesha.
- Advertising -
Read More