GST Composition Scheme: Relief for MSEMs; threshold limit increased to Rs 1.5 cr
In an easing of the compliance burden, the GST Council also decided that those opting for the scheme would need to file their returns only once a year, Jaitley said.
In a further relief to the micro, small and medium (MSME) sector, the threshold limit for eligibility under the GST Composition Scheme was raised to Rs 1.5 crore, from Rs 1 crore, by the GST Council on Thursday and will apply from the 2019-20 fiscal beginning April 1. "We had raised the Composition Scheme limit to Rs 1.5 crore. The decision will be applicable from April 1, 2019," Finance Minister Arun Jaitley told reporters here after chairing the 32nd meeting of the GST Council.
Those opting for the Composition Scheme pay a minimal Goods and Services Tax (GST) of 1 per cent.
In an easing of the compliance burden, the GST Council also decided that those opting for the scheme would need to file their returns only once a year, Jaitley said.
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The tax payment mode, however, would continue to be on a quarterly basis. This facility will also be also applicable from April 1.
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In a third decision, the GST Council also made small service providers, and those providing a mix of goods and services, with a turnover of up to 50 lakhs, eligible for the Composition Scheme.
With Thursday`s decision, service and mixed goods and service providers will be entitled to avail the benefit on payment of GST at 6 per cent, Jaitley said.
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