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GST Council in the 32nd meeting held on 10th January, 2019 at New Delhi took following decisions to give relief to MSME (including small traders), and took following other decisions-

1. Threshold limit for goods:

Effective from April 1, 2019, the GST exemption threshold has been raised from Rs 20 lakh to Rs 40 lakh. The threshold has been doubled by Rs 20 lakh. For special category states, the threshold has been doubled to Rs 20 lakh.

There would be two threshold limits for exemption from registration and payment of GST for the suppliers of goods i.e. Rs 40 lakhs and Rs 20 lakhs. States would have the discretion to decide and inform the Secretariat about one of the limits within a week’s time.

2. Threshold limit for services:

The threshold for registration for service providers would continue to be Rs 20 lakhs and in case of Special category States Rs 10 lakhs.

3. Composition limit increased to 1.5Cr from the present 1 cr:

The limit of annual turnover in the preceding financial year for availing composition scheme for suppliers of goods shall be increased to Rs 1.5 crore. 

4. Composition limit for Special category States:

Special category States would have to decide within a week about the composition limit in their respective States. 

5. Composition scheme for services:

A composition scheme is being made available for suppliers of services and mixed supplies i.e. goods and services with a turnover up to Rs 50 lakhs in preceding financial year. The rate applicable for such supplies shall be 6% (3% CGST and 3% SGST).

6. Quarterly payment and Annual Return:

Taxpayers opting for Composition Scheme will be required to continue to pay tax quarterly. However, relief has been given by way of annual return filing along with a simple declaration.

7. Committee for Real Estate

A committee consisting of 7 ministers shall be set up to consider a composition scheme that would be aimed at giving a boost to the residential segment of the real estate. Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for properties under under-construction or ready-to-move-in flats where completion certificate has not been issued at the time of sale. However, GST is not levied on sale of real estate properties for which completion certificate has been issued at the time of sale.

8. Committee for Lotteries: 

Also, a committee shall be set up to examine the tax structure that would be made applicable on lotteries. 

9. Free Accounting and Billing Software: 

Small taxpayers shall be provided with a Free Accounting and Billing Software by GSTN. 

10. Calamity cess in Kerala @1%:

GST Council has approved a levy of cess @ 1% for a period not exceeding 2 years on all intra-state supplies of goods and services within the state of Kerala 1%. 

Note: A notification regarding these recommendations is yet to be released. 

To enrol GST Audit subject of the author: Click here
To enrol GST Annual Return subject of the author: Click here


Published by

Vivek Agarwal FCA, CS, LLB
Category GST   Report

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