The 32nd GST Council Meeting took place at New Delhi, under the chairmanship of Shri Arun Jaitley, and the committee announced following significant decisions which would extend big relief to the SMEs and small traders:
- An increase in GST registration limit from Rs 20 lakhs to Rs 40 lakhs for the supplier of goods
- The existing limit under the composition scheme has been enhanced. The new turnover limit in order to join the scheme is of up to Rs 1.5 crores. Now the tax payments are to be made quarterly and returns to be filed annually starting from 1st April 2019.
- New composition scheme is introduced for service providers and those who supply services along with goods. The turnover limit set is Rs 50 lakhs and the tax rate is fixed at 6%.
- Group of Ministers were formed to study taxation of ‘under construction properties’ and lotteries.
- Calamity cess up to 1% for two years will be charged for supplies made within the state of Kerala (the funds collected through this cess would be utilized to meet deployment to overcome recent flood calamities in Kerala).
- No rate cuts were announced on any of the items or services during this meeting.
Mr. Ashok Magdum
Mr. Magdum has 37 years of experience in banking, law, finance and psychology. He was a member of the board of administration at Maharashtra State Co-operative bank, Mumbai during 2015-17.