The GST Council in its 32nd Meeting today (10/01/2019) has taken encouraging decisions by relaxing the tax exemption limit to Rs 40 lakhs of annual turnover from the earlier cap of Rs 20 lakhs and increasing the composition scheme (without input tax credit and no recovery of taxes on output liability) limit to Rs. 1.5 crores from present Rs. 1 crore.
Shri Sri Narain Aggarwal, Chairman SRTEPC welcomes this bold step of the Government and thanked Sri Narendra Modi, Hon’ble Prime Minister and Shri Arun Jaitley, Hon’ble Finance Minister and Smt. Smriti Zubin Irani, Hon’ble Minister for Textiles for this step of raising the exemption threshold and increasing the Composition Scheme Limit which will help all the SMEs significantly. Shri Aggarwal stated that by expanding the Composition Scheme, the Government is helping the small players under the SMEs segment who are not in a position to file returns in time, which was expected by them since long.
Other industry friendly decisions taken at the GST Council’s Meeting today are
- For hilly states and those in the North East, the exemption threshold has been doubled to Rs 20 lakh.
- Those providing services or mixed supplies (goods and services) with a turnover up to Rs 50 lakhs will now be entitled to avail composition scheme.
- Service providers and those who render mixed supplies of goods and services with a turnover up to Rs 50 lakh in the informal sector will be entitled to the composition scheme under the GST regime. The composition rate for services has been put at 6%.
- Composition tax payers will pay tax quarterly, but file returns annually.
- A seven-member GoM has been formed to look into the GST on real estate.
The above exemptions and relaxations will certainly facilitate Ease of Doing Business and smooth functioning of the SMEs. This will also encourage the Members of this Council in their efforts to increase exports of Indian MMF textiles.
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