Highlights of 32nd GST Council Meeting held on 10th January 2019

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TaxClue Team
TaxClue Teamhttp://taxclue.in
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

GST Council in the 32nd meeting held on 10th January, 2019 at New Delhi took following decisions to give relief to MSME (including small traders).

  • GST Registration – Threshold limit increased to 40 Lakhs from 1st April 2019

Effective April 1st, 2019, the GST exemption threshold limit has been raised from Rs 20 lakh to Rs 40 lakh. For Special category states (hilly states and those in the North East), the threshold has been doubled to Rs 20 lakh. States would have an option to decide about one of the limits within a weeks’ time. The threshold for registration for service providers would continue to be Rs 20 lakhs and in the case of Special Category States
Rs 10 lakhs.

  • Composition scheme for service providers from 1st April 2019:

A composition scheme shall be made available for suppliers of services (or mixed suppliers) with a tax rate of 6% (3% CGST + 3% SGST) having an annual turnover in preceding financial year up to Rs 50 lakhs.
This scheme shall be applicable to both service providers as well as suppliers of goods and services (mixed suppliers), who are not eligible for the presently available composition scheme for goods.
They would be liable to file one annual return with quarterly payment of taxes (along with a simple declaration).

  • Increase in threshold turnover limit for the existing composition scheme from 1st April 2019.

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.

  • Compliance simplification for existing composition scheme holders:

The compliance under composition scheme shall be simplified as now they would need to file one annual return but payment of taxes would remain quarterly (along with a simple declaration).

  • Real Estate:

A committee has been set up to consider real estate GST rates, a consensus is yet to be achieved, says FM Arun Jaitley.

  • Other decisions to give relief to MSME (including small traders)

Free Accounting and Billing Software shall be provided to small taxpayers by GSTN.

  • Matters referred to Group of Ministers:

i. A seven-member Group of Ministers shall be constituted to examine the proposal of giving a composition scheme to boost the residential segment of the real estate sector.
ii. A Group of Ministers shall be constituted to examine the GST rate structure on lotteries.

  • Revenue mobilization for natural calamities (Calamity cess by Kerela)

The Council approved levy of cess on intrastate supply of goods and services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.

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