• Major Decisions taken in 32nd GST Council Meeting held on 10th January, 2019

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    Major Decisions taken in 32nd GST Council Meeting held on

    10th January, 2019

     

    The GST Council in its 32nd Meeting held on 10th January, 2019 at New Delhi, took the following major decisions:

     

    Ø  Higher exemption threshold limit for registration w.e.f. 01.04.2019

     

    • 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 an option to decide about one of the limits within a weeks000040000 time.

     

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

     

    Ø  Major changes in Composition Scheme w.e.f. 01.04.2019

     

    • Increase in turnover limit for the existing Composition Scheme: The limit of Annual Turnover in the preceding financial year for availing composition scheme for goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the Composition Limit in their respective States.

     

    • Composition Scheme for Services: Presently, there was no composition scheme for providers of services and mixed supplies. Now, for such suppliers, a composition scheme shall be made with a tax rate of 6% (3% CGST +3% SGST) having an annual turnover in the preceding financial year up to Rs 50 lakhs. The said scheme shall be applicable to providers of service as well as suppliers of goods and services (mixed suppliers).
    • Compliance Simplification: Composition Dealers would need to file only one Annual Return but Payment of Taxes would remain Quarterly (along with a simple declaration).

     

     

    Ø  Other Decisions:

     

    • Free accounting and billing software shall be provided to small taxpayers by GSTN.

     

    • 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 not exceeding 2 years.

     

    • A seven member Group of Ministers (GOM) shall be constituted to examine the proposal of giving a composition scheme to boost the residential segment of the real estate sector and to examine the GST rate structure on lotteries.

     

     

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