On 10th January, the first council meeting of this year was held at New Delhi under the chairmanship of Union Minister of Finance & Corporate AffairsMr. Arun Jaitley.
Here are the key Updates from GST Council meeting,
- GST Council has decided to increase the GST registration threshold limit to Rs 40 lakh from Rs 20 lakh.
- GST Council agrees to allow composition taxpayers to pay GST quarterly and file returns annually. The council also approved the composition scheme for services.
- GST Council decides to Increase the limit of annual turnover for composition scheme to 1.5 cr effective from 1st April 2019
- Real estate issues referred to the Group of Ministers, the composition is expected to be announced soon: Sources
- Composition rate for services to be 6%. GST composition limit for services set at Rs 50 lakh
- Kerala Govt to levy a 1 percent calamity cess for 2 years to shore up funds for rehabilitation
- Yearly return for taxpayers of composition scheme.
- GST Council sets up a committee to consider real estate GST rates says Finance Minister
On 32nd GST council meeting, the GST exemption threshold was increased from the earlier cap of INR 20 lakh to INR 40 lakh. Similarly, the exemption limit for the Special Category States has also been extended from INR 10 lakh to INR 20 lakh.
The limit in case of supply of goods is increased to Rs 20 lakhs and such States have been given an option to either choose Rs 40 lakhs or Rs 20 lakhs threshold limit in a week’s time. The threshold limit for service providers would continue to be INR 20 lakh and INR 10 lakh in case of special category States.
Change in Composition Schemes
On 32nd Council Meet, it was decided to extend the composition scheme to service producers belonging to the informal sector with a turnover of up to INR 50 lakhs. All service providers opting for this scheme will be liable to pay GST at a flat rate of 6%. It was also decided to allow composition taxpayers to pay GST on a quarterly basis, but file returns annually.
The GST Council decided to increase the limit of annual turnover for composition scheme to INR 1.5 crore effective from 1st April 2019. However, special category states will need to decide, within one week, about the composition limit in their respective States
Disaster Cess for Kerala
Kerala to levy a cess to cope with the natural calamities caused due to floods last year. Kerala will now be able to impose a cess of 1% on the intra-state sale of goods and services, for a maximum of two years.
Extension of dates on GST Practitioner Exam
The last date for passing the examination for GST Practitioners to be extended till 31.12.2019 for those GST Practitioners who have enrolled under rule 83(1)(b). i.e. who were sales tax practitioner or tax return preparer under the existing law for a period of not less than five years.