GST Council announces relief to MSMEs

For availing Composition Scheme for Goods, the Council raised the limit of annual turnover in the preceding financial year to ₹1.5 crore. “Special category states would decide, within one week, about the Composition Limit in their respective States,” an official statement said.

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).

“There would be two Threshold Limits for exemption from Registration and Payment of GST for the suppliers of Goods i.e.  ₹40 lakh and  ₹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  ₹20 lakh and in case of Special Category States at  ₹10 lakh,” the statement added.

Further, a Composition Scheme shall be made available for Suppliers of Services (or Mixed Suppliers) with a tax rate of 6 per cent (3 per cent CGST + 3 per cent SGST) having an annual turnover in the preceding financial year up to Rs50 lakh. The 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).

The decisions would be effective from April 1, 2019.

Under revenue mobilisation for natural calamities, the Council also approved levy of cess on intra-state supply of goods and services within the state of Kerala at a rate not exceeding 1  per cent for a period not exceeding 2 years. (RKS)

Fibre2Fashion News Desk – India