The 32nd GST Council meeting was held on 10th January 2019 at New Delhi under the Chairmanship of Finance Minister Shri Arun Jaitley which took decisions to give certain relief to small taxpayers, MSME’s. Following are some of the key highlights from the meeting.
- GST Registration Threshold Limit Increased
The exemption limit for suppliers of goods will be increased from Rs. 20 lakhs to Rs. 40 lakhs
- In case of special category states, the threshold for supplier has been increased from Rs. 10 lakhs to Rs. 20 lakhs
- The Threshold limit for supplier of services/service providers will remain Rs. 20 lakhs and Rs. 10 lakhs in special category states.
- Composition Scheme turnover limit increased
- The limit of annual turnover to opt for composition scheme shall be increased to Rs. 1.5 crore.
- Special category States would decide within 1 week about the composition limit in their respective States
- The Composition scheme taxpayer shall have to pay GST every quarter and need to file one annual return.
- New Composition scheme for Service Providers
- This scheme will be available to service provider or provider of mixed supply of goods and services with annual turnover of 50 lakhs in preceding Financial year
- The GST rate under this scheme is fixed at 6% (3% CGST + 3% SGST)
- Imposition of Calamity Cess in the State of Kerala
- GST Council has approved to charge calamity cess of upto 1% for maximum of 2 years on all supply of goods and services within the State of Kerala.
- The Cess will help in revenue mobilization due to natural calamities occurred in Kerala last year.
- Free Accounting and Billing Software for Small Taxpayer
- Free Accounting and Billing Software shall be provided to small taxpayer upto Rs. 1.5 crore turnover by Goods And Service Tax Network (GSTN)