GST Council Meet, The GST Council has made the following Recommendations in 32nd GST Council Meet.
- The GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley took various decisions including giving the approval to increase in the turnover limit for the existing Composition Scheme.
- The limit of composition schemes for goods has been raised to Rs.1.5 crore at 1% GST rate.
- GST Council also decided to introduce a Composition Scheme for Services: A Composition Scheme shall be made available for suppliers of Services (or mixed suppliers) with a tax rate of 6% (3% CGST +3% SGST)having an Annual Turnover in preceding Financial Year up to Rs 50 lakhs.
- To ease the compliance burden, a single annual return with quarterly tax payments has been introduced for the composition schemes.
- Exemption limit for paying GST for goods increased from Rs.20 lakhs to Rs.40 lakhs. For North-East and hill States, the exemption limit has been raised from Rs.10 lakhs to Rs.20 lakhs.
- Free accounting and billing software will be made available to small assessees up to Rs.1.5 crore turnover.
- The said Scheme shall be applicable to both Service Providers as well as suppliers of Goods and Services, who are not eligible for the presently available composition scheme for goods.
- They would be liable to file one Annual Return with Quarterly payment of Taxes (along with a simple declaration). Effective date: Above mentioned all the decisions shall be made operational from the 1st of April, 2019.
- Other important decisions taken in the Council Meeting include Compliance Simplification: The compliance under Composition Scheme shall be simplified as now they would need to file one Annual Return but Payment of Taxes would remain quarterly (along with a simple declaration).
- Higher exemption threshold limit for the supplier of Goods: There would be two Threshold Limits for exemption from registration & payment of GST for the suppliers of Goods i.e. Rs 40 lakh & Rs 20 lakh. States would have an option to decide about one of the limits within a weeks’ time.
- The Threshold for registration for Service Providers would continue to be Rs 20 lakh and in case of Special category States at Rs. 10 lakh.
- It was also decided to refer the following matter to the Group of Minister(GOM): A 7-Member Group of Ministers shall be constituted to examine the proposal of giving a Composition Scheme to boost the residential segment of the Real Estate Sector.
- It was also decided to refer the following matter to another Group of Minister (GOM): A Group of Ministers shall be constituted to examine the GST Rate Structure on lotteries.
- Revenue Mobilization for Natural calamities: GST Council approved the levy of cess on the intra-State supply of Goods and Services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years. GST Council Meet