32nd GST Council Meeting – Here is what in store for SMEs

32nd GST Council Meeting - Here is what in store for SMEs“Each one of these decisions is intended to help SMEs”

1. Exemption limit for GST registration – 20 lakhs replaced by 40 lakhs. For Hilly States and North Eastern States – 10 Lakhs limit replaced by 20 Lakhs. These states will now be able to choose if they want to keep the GST exemption limit at Rs 20 lakh or Rs 40 lakh.”Rs 40 lakh will be the exemption limit for all states, and Rs 20 lakhs for North Eastern and hill states with a caveat that they can opt for higher threshold. The raised exemption threshold will allow around 20 lakh taxpayers to opt out of GST if they chose to.

2. Composition Scheme limits of Rs 1.5 crores to be effective from 1st April 2019.

3. Composition dealers to pay tax quarterly but file returns annually from 1st April 2019

4.Composition Scheme for Services – Under the service tax regime there was no composition scheme for services. But a large number of services are provided by the people in the informal sector, therefore for those who are providing services or mixed supplies (goods & services) now with a turnover of uptoRs 50 lakhswill be entitled to the benefit of composition scheme because in services there are no comparable inputs as in the case of manufacturing or trading. Moreover, the composition rate for services will be 6%.

5.Kerala is now entitled to impose a cess of 1% on intra state sales i.e., within Kerala for a period of 2 years in order to help Kerala to cope with the natural disaster.

 

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