Prime Minister Narendra Modi Thursday said the GST Council's decisions relating to small businesses will greatly help MSMEs, traders and the service sector and the government is committed to a simple and people-friendly GST.
"Commendable decisions taken by the GST council, which will greatly help MSMEs, traders and the services sector. We remain committed to a simple and people-friendly GST," Modi tweeted.
The GST Council, headed by Finance Minister Arun Jaitley and comprising his state counterparts, at its meeting Thursday doubled the exemption threshold for businesses under GST to an annual turnover of Rs 40 lakh.
The council also decided that the GST Composition Scheme, under which small traders and businesses pay 1 per cent tax based on turnover, can be availed by businesses with a turnover of Rs 1.5 crore, against the earlier Rs 1 crore, with effect from April 1.
Also, service providers and suppliers of both goods and services up to a turnover of Rs 50 lakh would be eligible for the composition scheme under the Goods and Services Tax (GST) and pay a tax of 6 per cent.
Under the composition scheme, traders and manufacturers can pay taxes at a concessional rate of 1 per cent, while restaurants pay 5 per cent GST.
There are over 1.17 crore businesses which have registered under the GST, which was rolled out from July 1, 2017. Of these over 18 lakh have opted for the composition scheme.
While a regular GST taxpayer has to pay taxes on a monthly basis, a composition supplier is required to pay taxes quarterly.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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