GST Council: Annual turnover of composition scheme will be increased to Rs 2 crore
On November 10, the GST Council cut tax rates of over 175 products that were in the highest tax slab of 28% under the regime. Currently only 50 items have been left in the 28% category out of a total of 227 items that were present earlier.
The GST Council headed by Finance Ministery Arun Jaitley have decided to increase the annual turnover eligibility for the composition scheme to Rs 2 crore.
In its 23 meeting which was held in Guwahati, the GST council said, "Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rs 1 crore under the law. Thereafter eligibility for composition will be increased to Rs 1.5 crore per annum."
Further the supply of services by composition tax payer up to Rs 5 lakh per annum will be allowed by exempting the same.
While the uniform rate of tax @1% under composition scheme for manufacturers and traders (for traders, turnover will be counted only for supply of taxable goods).
No change for composition scheme for restaurant.
As per the council, the changes recommended will be implemented only after necessary amendment of the CGST Act and SGST Acts.
On the changes made by the GST Council, Prime Minister Narendra Modi tweeted, "The recommendations made by the GST Council today will further benefit our citizens and add strength to the GST. These recommendations are in spirit of the continuous feedback we are getting from various stakeholders on GST."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.