Hello,
The 32nd GST Council Meeting was held on 10th January 2019 at New Delhi. The decision taken in this meeting with respect to GST turnover limit and composition scheme changes would be effective from 1st April 2019. In the meeting, the Government took steps to provide compliance relief to small businesses by providing various concessions as discussed in this email.
GST Turnover Limit Increased
The Central Government has decided to provide two threshold limit for GST registration for suppliers of goods, Rs.20 lakhs and Rs.40 lakhs. However, each of the individual State Governments must decide on the threshold limit within a week as the State’s revenue is also tied to GST. This decision will now lead to various States having different GST threshold limits overtime.
Service providers will continue to be required to register for GST once they cross a turnover of Rs.20 lakhs and in case of Special Category States at Rs.10 lakhs.
Composition Scheme Simplified
The Government has given a thrust to the GST Composition Scheme with the following three changes:
Increase in Turnover Limit
The limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods has been increased to Rs 1.5 crore. Special category States must decide, within one week, about the Composition Limit in their respective States.
Yearly Return
Persons enrolled under the Composition Scheme were earlier required to file GSTR-4 return every quarter. Now, persons enrolled under the Composition Scheme can one file annual return but must make quarterly payment of taxes due.
Service Providers Eligible
Service providers with a turnover of less than Rs.50 lakhs are also now made eligible to enrol for the Composition Scheme. Such service providers would have to pay GST at the rate of 6% (3% CGST +3% SGST) of turnover. Its important to note that those enrolled under Composition Scheme are not eligible to claim input tax credit.
No comments:
Post a Comment