UPDATE ON 32nd GST COUNCIL MEETING HELD ON 10th JANUARY 2019
The GST Council in its 32nd Meeting held on 10th January 2019 at New Delhi has made various decisions to provide relief to MSME sector (including small traders). The decisions made in the meeting are as follows:
Law Related Amendments
- Upper Cap of turnover limit for opting composition scheme to be raised to 1.5 Crore from Rs. 1 Crore.
- Compliance under Composition scheme would now be simplified as the traders would be required to file one Annual Return with quarterly payment of taxes.
- A composition scheme shall be made available for suppliers of services (or Mixed suppliers) other than Restaurant services with a tax rate of 6% (3% CGST + 3% SGST) having an annual turnover in preceding financial year upto Rs. 50 Lakhs.
- Threshold limit for registration for suppliers of goods to be increased to Rs. 40 Lakhs from the existing limit of Rs. 20 Lakhs and in case of special category states, the same shall be raised to Rs. 20 Lakhs from the existing limit of Rs. 10 Lakhs.
- States have been provided an option to decide about the limits within a period of 1 week.
- However, the threshold limit for registration for service providers would continue to remain as Rs. 20 Lakhs and Rs. 10 Lakhs in special category states.
- Free Accounting and Billing Software will be provided to Small Taxpayers.
- 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% for a period of upto 2 years.
- The council has also referred matters to examine the GST rate on lotteries and for giving composition scheme in real estate sector to a Group of Ministers (GoM).
These decisions shall be made operational from 1st April 2019.