By Anchal Jain
Chaired by the finance minister Mr. Arun Jaitley, the 32nd GST Council meeting was scheduled on 10th of January 2019. The GST Council roled out benefits to small scale businesses. Here are the key takeaways from the GST Council meeting:
- Much to the relief of small businesses, the GST Council has decided to introduce two threshold limits for registration and payment of GST for supplier of goods i.e., INR 20 Lacs and INR 40 Lacs. However, the states would have the option to decide one of the threshold limits. The decision shall be effective from April 1, 2019.
- Further, the threshold limit for service providers and in case of special category states shall continue to prevail at INR 20 lacs and INR 10 Lacs respectively.
- The threshold limit to opt for composition scheme for supplier of goods has been increased to INR 1.5 crore. However, the special category states shall decide on the limit for their respective states.
- Moving forward, the composition scheme shall be available to the supplier of services as well as suppliers supplying a combination of goods and services. The scheme shall be applicable to those who have an annual turnover of up to INR 50 lacs in the preceding financial year with a tax rate of 6% (3% CGST and 3% SGST).
- Simpler compliance has been introduced under composition scheme. Registrations under composition scheme are required to file only one annual return. However, the payment of tax shall be made quarterly along with a simple declaration.
- All the provisions discussed above, shall be effective from April 1, 2019.
CALAMITY CESS IN KERALA
- The GST Council approved the levy of calamity cess on intra state supplies of good, services and both in the state of Kerala at a rate not exceeding 1% for a period of two years to fund rehabilitation in the state.