New Delhi, Jan 10 : Giving a big relief to the MSME sector and small traders, the Goods and Services Tax (GST) Council on Thursday increased the limit of annual turnover for availing the composition scheme to Rs 1.5 crore from existing Rs 1 crore.
The scheme would come into effect from new financial year April 1, 2019, Union Finance Minister Arun Jaitley told reporters. He was briefing media about the decisions of the 32nd GST Council meet.
Mr Jaitley said special category states would take decision about the composition limit in their respective states within one week.
He said under the composition scheme, traders would now need to file only single annual return though payment of taxes would remain quarterly along with a simple declaration.
The Council also raised the bar of threshold limit for exemption from registration and payment of the GST to Rs 40 lakh from existing Rs 20 lakh while the limit for NorthEast and hilly states was hiked to Rs 20 lakh from Rs 10 lakh. (UNI)