The Central Government has notified the increase in threshold limit for opting Composition scheme Levy under the new Goods and Services Tax (GST) regime.
Now, small dealers having turnover upto one crore can avail the benefit of the said scheme. Eralier, the maximum limit was 75 lakhs.
This is part of Governments initiative to ease norms for small traders and to reduce their compliance burden.
Composition scheme is an alternate method of taxation, which allows small businesses with annual turnover up to Rs 75 lakhs, to pay tax at a concessional rate, as well as reduce the compliance cost. The revenue threshold is Rs 50 lakhs for dealers across nine states including Arunachal Pradesh, Nagaland and Tripura among others. The enrollment into the plan is optional.
The GST Council, the apex body in the new tax regime, in its last meeting, had recommended to enhanced the threshold limit for opting for composition scheme.
Read the full text of the Notification below.
