New Delhi, January 10: The 32nd meeting of the GST Council was held on Thursday where some key decisions have been taken. Addressing the media after the meeting, Union Finance Minister Arun Jaitley announced the GST Council has decided to increase the existing limit for the exemption for small businesses. Currently, firms with an annual turnover of up to Rs 20 lakh are exempted from registration.
The GST Council doubled the GST exemption limit to Rs 20 lakh for northeastern states and Rs 40 lakh for the rest of the country, Jaitley said. The GST Council further decided to raise the annual turnover limit for businesses availing composition scheme from the current Rs 1 crore to Rs 1.5. This will come into effect from April 1. "Those who come under the composition scheme will pay tax quarterly, but the return will be filed only once a year," Jaitley announced. PM Modi Bypassed the GST Council: Andhra Pradesh Minister.
The twin move would give relief to micro, small and medium enterprises (MSMEs), he said. Also on the agenda was lowering GST on under-construction flats and houses to 5 per cent. Jaitley, however, said the GST Council will form a group of ministers to consider GST on real estate and lottery after differences of opinion. "All decisions are taken based on consensus. If there is a difference of opinions, we try to find out a balanced step," Jaitley said.
The GST Council also allowed Kerala to levy 1 per cent calamity cess on intra-state sales for a period of up to two years.