GST Council Announces Some Relief To MSMEs
AFTER complaints, 32nd GST Council headed by Union Finance Minister Arun Jaitley has announced relief to micro, small and medium enterprises. The council also allowed Kerala to levy 1 per cent calamity cess on intra-state sales for a period of up to two years. It decided to form a seven-member group of ministers on including real estate and lottery under the Goods and Services Tax. The exemption limit has been doubled from payment of Goods and Services Tax from April 1 to INR 40 lakh and announced that the higher turnover cap of INR 1.5 crore for availing composition scheme of paying 1 per cent tax . There will be two exemption limits: INR 40 lakh will apply to major states while the same has been capped at INR 20 lakh for hilly states including those in the northeast, Jaitley told media people”.The Council also allowed Kerala to levy a 1 per cent calamity cess on intra-state sale of goods and services for a period of up to two years to mobilise revenues to meet the cost of rehabilitating parts of states that were ravaged by floods last year. Finance Minister Arun Jaitley said the taxpayers with an aggregate turnover of Rs 40 lakh would now be exempted from the GST. For the north eastern states, the exemption would now be Rs 20 lakh. Currently, businesses with a turnover of up to Rs 20 lakh annually is exempted from GST registration, while the limit for hilly and north eastern states is Rs 10 lakh. Sources said the annual revenue loss on account of doubling exemption limit to INR 40 lakh, considering that all states implement it, is Rs 5,200 crore. Jaitley told media after the meet. The GST Composition Scheme, under which small traders and businesses pay a 1 per cent tax based on turnover, can be availed by businesses with a turnover of Rs 1.5 crore, against the earlier Rs 1 crore, with effect from April 1.Also, service providers and suppliers of both goods and services up to a turnover of Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 per cent. The twin decision under the composition scheme would have an annual revenue impact of about INR 3,000 crore. These decisions would give a relief to micro, small and medium enterprises (MSMEs).On GST rate for real estate, the council has decided for form a seven-member group of ministers after differences of opinion emerged at the meeting, he said, adding there were diverse views on lottery. A ministerial panel will look into it as well(pic curtsey to BWDisrupt)
