GST Exemption 2019
The government has classified certain goods and services as exempt from GST. Unlike with zero-rated goods and services, business owners cannot claim input tax credit for the sale of exempted goods and services. Exemption from tax refers to the supplies which attracts the “Nil rate of Tax” or which may be wholly exempt from tax and also includes non – taxable supply.
GST Exemption Limit:
To micro, small and medium enterprises (MSMEs), the GST Council has now doubled the tax exemption limit from Rs 20 lakhs (which is applicable till 31st March 2019) to Rs 40 lakhs in annual revenue.
The turnover limit for businesses availing of the GST composition scheme, which allows them to pay goods and services tax at a flat rate, has been raised from Rs 1 crore (which is applicable till 31st March 2019) to Rs1.5 crore.
The GST exemption limit has been doubled to from Rs 10 lakhs (which is applicable till 31st March 2019) to Rs 20 lakh to the north-eastern and hilly states.
Following are the Goods & Services Exempted from GST:
Exempted goods:- Food, raw material, tools/Instruments and Miscellaneous (such as books, maps, newspapers, journals, non-judicial stamps, postal items, live animals {except horses}, bangles, chalk, organic manure etc).
Exempted services:- Agricultural, transportation, services provided by the government and diplomatic missionaries, judicial, educational, medical services provided by the organizers & miscellaneous services.
Kindly find the detailed list of goods & services on the link below:-
Article Contributor:
Mr. Arun Vartak
Mentor, deAsra
Mr. Vartak has 34 years of experience as a banker specialised in handling credit processing cells. He has served in many banks including State Bank Of India, Janata Sahakari , Saraswat Bank and various other management institutes.
