In a major respite towards micro, small & medium enterprises (MSMEs), the GST (Goods and Services Tax) Council led by finance minister Arun Jaitley on Jan 10 doubled up the GST exemption limit for firms in the segment to those with a yearly turnover of INR 40 lakh from the present INR 20 lakh. Further, the limits for the North Eastern as well as hilly states, has been augmented to INR 20 lakh from the present INR 10 lakh. This move to advance the threshold for the GST registration is noteworthy considering that small businesses were affected by the central government’s 2nd major move after the Swarna Reservation Bill that has been taken few days before the election 2019.
Some of the Major Updates from the Meeting
- Committee formed for real estate segment to go through the concerns as well as submit the report.
- GST Council allows the Government of Kerala to impose 1 per cent disaster cess for 2 years towards collecting funds for rehabilitation.
- 6 per cent GST rate is pertinent to the Composition scheme for the service providers as well as turnover of up to INR 50 lakh every yearly.
- The registration threshold limit in GST augmented from the previous value of INR 20 lakh to INR 40 lakh. However, Kerala and Chattisgarh were given exemption to stay under in any of the limit as per to their convenience i.e. either 20 lakh or 40 lakh.
- In GST Council the limit for annual turnover for composition pattern taxpayers to INR 1.50 Crores was also increased, that will effective from 1 April 2019. This will also allow the taxpayers with the composition to file returns yearly and pay their tax on the quarterly basis.
- The meeting that was held at the Vigyan Bhawan, Delhi led by the Union finance minister Arun Jaitley as well as finance ministers state wise.