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DECISIONS TAKEN IN 32ND GST COUNCIL MEETING HELD ON 10TH JANUARY 2019
Increase in turnover limit for the existing composition scheme for goods:
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.
Composition scheme for services:
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.
The said scheme shall be applicable to both service providers as well as suppliers of goods and services, who are not eligible for the presently available composition scheme for goods.
Compliance simplification under composition scheme :
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).
Higher exemption threshold limit for supplier of goods:
There would be two threshold limits for exemption from registration and payment of GST for the suppliers of goods i.e. Rs.40 lakhs and Rs.20 lakhs.
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 case of Special category States Rs 10 lakhs.
Natural Calamity Cess :
Kerala is allowed to impose natural calamity cess of 1% on the intra-state supply of goods and services. The cess will be levied for two years. This would enable states to collect additional funds in the event of the calamity that took place in the month of August 2018.
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