Updates for GST Council 32nd meeting
In the 32nd GST Council meeting, held on January 10, 2019, the council proposed various relief for MSME sector and other decisions all of which would be effective from the April 1, 2019. Key takeaways of 32st GST Council meeting are as follows:
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Higher exemption threshold limit for supplier of goods: For supplier of goods, the existing threshold (Rs. 20 lakhs) has been increased to Rs. 40 Lakhs for exemption from registration and payment of GST. The council has given the states a choice to choose one of the limits within a week. While supplier of services enjoys no relaxation in the limit and limit of Rs 20 Lakhs (Rs. 10 lakhs in case of special category states) would be applicable.
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Reliefs related to composition scheme:
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The limit of annual turnover, in the preceding financial year, for availing of the compositions scheme for goods shall be increased from Rs. 1 Crore to Rs. 1.5 Crores and special category states are given an option to decide the limit in a week.
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Currently, composition suppliers are required to file GSTR 4 on a quarterly basis. To simplify the compliance procedure it has been decided that for all composition scheme taxpayers, only one annual return needs to be filed while payment of GST would remain on a quarterly basis (along with a simple declaration).
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The option to avail of composition scheme has been extended to service providers who have the turnover of up to Rs. 50 lakhs during the previous financial year which provides the service providers to pay GST at the rate of 6% (3% CGST + 3% SGST). The said scheme shall be applicable to both service providers as well as suppliers of goods and services.
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The Govt. shall provide free accounting-cum-billing software to small taxpayers.
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Revenue mobilization for natural calamities: A new cess at the rate not exceeding 1% shall be levied on intra-state supply of goods or services within the state of Kerala for a period of not exceeding 2 years as a solution to natural calamity loss.
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Matters referred to Group of Ministers: GST Council has asked the group of ministers to evaluate the proposal of extending the composition scheme to real estate sector so as to give a boost to residential housing segment and examine the GST rate structure on Lotteries.
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GST Practitioners: Last date for passing the examination for GST practitioners has been further extended till December 31, 2019.