The GST Council has made a big decision about the composition scheme.
GST Council today has taken several major decisions for businesses and the general public. This was the 32nd meeting of the council.
GST Council has increased the scope of GST. Now the traders who turnover up to 20 lakh rupees came under the purview of GST. But now 40 lakh turnover workers will be in the realm of GST. In small states, the limit which was 10 lakh, has been increased to 20 lakh rupees. For this reason, many small businessmen will be out of the realm of GST. These small businessmen will not have the hassles of GST registration.
The limit of composition scheme has been reduced to Rs 1.5 crore in the meeting. So far this limit was Rs. 1 crore. This new limit will be applicable from 1 April 2019. Apart from this, GST Council has allowed SMEs to file annual returns. Which means that from April 1, 2019, these businessmen will have to fill the returns once in a year. However, these small businesses will have to pay tax every quarter. Earlier, they had to fill the returns in every quarter.
In this meeting, Service Sector Unit, which has a turnover of up to 50 lakh, has been brought under the composition scheme. These will be taxed at a rate of 6%. The GST Council has also approved Kerala to impose 1% disaster cess for 2 years. The decision to reduce the rate of GST on the under construction, flat and the house has been postponed. The committee has been formed for this.
The GST Council comprises Finance Ministers of all the states. These meetings were held today under the chairmanship of Finance Minister Arun Jaitley in Delhi. The GST Council takes a decision on all matters connected with GST. In the previous meeting, the rate of tax was reduced to 26 things.
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