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Big bonanza for small traders, businesses with turnover under Rs 40 lakhs exempted from GST

News Nation Bureau | Edited By : Surabhi Pandey | Updated on: 10 Jan 2019, 04:14:24 PM

New Delhi:

In a bid to give relief to small businesses, the GST Council Thursday doubled the exemption limit and raised the threshold for availing the composition scheme. The GST Council doubled the GST exemption limit to Rs 20 lakh for north eastern states and Rs 40 lakh for the rest of the country, Finance Minister Arun Jaitley told reporters in New Delhi on Thursday. The scope of the GST Composition Scheme, under which small traders and businesses pay a small tax based on turnover rather than value addition, was raised to Rs 1.5 crore from Rs 1 crore.

The twin move would give relief to micro, small and medium enterprises (MSMEs), he said. The council also allowed Kerala to levy 1 per cent calamity cess on intra-state sales for a period of up to two years.

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On including real estate and lottery under the Goods and Services Tax, the council decided for form a seven-member group of ministers after differences of opinion emerged at the meeting, he said.

Last year on December 22, the Goods and Services Tax (GST) Council reduced the tax rates of as many as 33 items on Saturday. Jaitley added that "Monitors and TV screens, tyres, power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially-abled persons were also brought down to 5%." Informing about the other tax cuts, Jaitley said that "movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%."

Also Read | GST standard rate to be fixed between 12-18% in future: Arun Jaitley

Jaitley also clarified on the issue of taxes on cement and automobile tax. These are the only two items of daily need that have remained in the luxury slab. Explaining the reason, Jaitley said, "There are 28 items left in the 28% bracket if we include luxury and sin items. 13 items are from automobile parts and 1 is cement. Cement's revenue is 13000 crore and automobile parts revenue is 20000 crore. If they are brought down from 28% to 18% implications are of 33,000 crore."

(With PTI inputs)

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First Published : 10 Jan 2019, 03:31:57 PM