Major Decisions taken in 32nd GST Council Meeting

GST Council

The GST council, in its 32nd meeting held at New Delhi, made the following decisions.

Increase in turnover limit for the existing composition scheme: The limit of annual turnover in the preceding financial year for availing composition seller. 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: 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 the supplier of goods: Time 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 on. of the limits within a weeks’ time. The threshold for registration for service providers would continue to be Rs 20 lakh and in case of Special category States Rs 10 lakhs.

Also Read: GST Council Meet: Exemption Limit Hiked, Composition Scheme extended to Services

Composition scheme for services: A composition scheme shall be made available for suppliers a services (or mix. suppliers) with a tax rate of 6% (3% CGST +3% SGST) having an annual turnover in preceding financial year up to Rs 50 latch. 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. They would be liable to file one annual returns with quarterly payment of taxes (along with a simple declaration).

The above decisions shall be made operational from the of April 2019.

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: GST Council approved 1, or cess on the intra-State supply of goods and services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.