Home » GST » 32nd meeting of GST Council accorded massive relief for MSME sector.

GST COUNCIL

The GST council in its 32nd meeting as on 10-01-2019 headed by Mr. Arun Jaitleyji, accorded massive relief for MSME sector.

GST Threshold Limit
In 32nd GST council meeting to help SMEs the Threshold limit increased to 40 Lakhs, effective April 1, the GST exemption threshold has been raised from Rs 20 lakh to Rs 40 lakh. For hilly states and those in the North East, the threshold has been doubled to Rs 20 lakh. Now states will be able to choose if they want to keep the GST exemption limit at Rs 20 lakh or Rs 40 lakh.The raised exemption threshold will allow around 20 lakh taxpayers to opt out of GST if they chose to.

Expansion of Composition Scheme
In 32nd meeting of the GST Council, has raised the existing Composition Scheme turnover threshold to Rs 1.5 crore and expanded the scheme to include services as well, starting April 1, 2019.
The existing Composition Scheme turnover threshold raised to Rs 1.5 crore from Rs. 1 crore.
Those who use the scheme from April 1 will pay tax quarterly and to ease compliance burden a single annual return has been introduced for composition schemes.
A new composition scheme has been introduced for those (Informal Sector) providing services or mixed supplies (goods and services) with a turnover up to Rs 50 lakhs will now be entitled to avail composition scheme.
Compounding rate for services under composition scheme is fixed at 6 percent.
The GoM had recommended that the threshold limit of the composition scheme, that allows small businesses to pay taxes at a lower rate without getting any input tax credits.

Real Estate Sector
A committee has been set up to consider real estate GST rates, a consensus is yet to be achieved, says FM Arun Jaitley.

Calamity cess by Kerela @1%
32nd GST Council lets Kerala levy 1% cess for 2 years on intra-state sales: continued till election 2019.hope notified soon

Free Accounting Software
Free accounting and billing software will be made available to small assesses upto to Rs. 1.5 crore turnover.

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