The Central Government, on Thursday notified the increase in GST threshold limit in a relief for small traders. The increased threshold limit will be applicable from 1st April 2019.
Further, the effective date for availing higher turnover cap of Rs 1.5 crore for availing composition scheme by traders has also been fixed as April 1.
The Government also notified that the service providers and suppliers of both goods and services with a turnover of up to Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 per cent from the beginning of next fiscal.
The decisions taken by the GST Council headed by the Finance Minister Arun Jaitley has now been made applicable to the taxpayers. These decisions would come into effect from April 1, a finance ministry statement said.
“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.
“The Threshold for Registration for service providers would continue to be Rs 20 lakhs and in case of Special Category States Rs 10 lakhs,” it said.
Also the GST Composition Scheme, under which small traders and businesses pay a 1 per cent tax based on turnover, can be availed by businesses with a turnover of Rs 1.5 crore, against the earlier Rs 1 crore, with effect from April 1.To Read the full text of the Notification CLICK HERE