Recently, the GST council doubled the exemption limit to Rs. 40 Lakhs for the payment of Goods and Services Tax. Moreover, it also announced a higher turnover limit to Rs. 1.5 Cr for availing composition scheme of paying 1 percent tax which will be effective from 1st April 2019. Apart from this the GST Council also allowed the Government of Kerala to levy 1 Percent calamity cess on the intra-state sale of Goods and Services for a period of upto 2 years, in order to mobilise revenues, which can meet the cost of rehabilitating parts of state that were destroyed during floods last year.
The taxpayers who have an annual turnover of Rs. 40 Lakh are exempt from GST, the exemption limit for the North Eastern states is now Rs. 20 Lakh. Currently, businesses with a turnover of up to Rs 20 lakh is exempt from GST registration, while the limit for hilly and north eastern states is Rs 10 lakh.
From 1st April 2019 onwards, the businesses which pay 1 percent tax under GST Composition scheme are exempt from paying tax, if their annual turnover is below Rs. 1.5 Cr, earlier this limit was Rs. 1 Cr.
Moreover, service providers and suppliers of both goods and services, who have a turnover of upto Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 percent. Adding to this, the council announced that, the businesses that have opted for composition scheme will have to file just one tax return annually, but they will have to pay taxes once every quarter.
GST was ruled out on 1st July 2017 and since then a lot of businesses have opted for Composition Scheme under GST, that’s the reason why, the above-mentioned changes were welcomed with open arms by the small businesses.