The 32nd GST Council Meeting concluded with a few key decisions being taken that are expected to benefit small and medium businesses across multiple sectors. The following are highlights of the key decisions taken at the GST Council Meeting held on 10th January 2019.
- GST exemption for businesses involved in supply of goods has been increased from the earlier level of Rs. 20 lakh to the new level of 40 lakh. For hilly states, the same limit will now be 20 lakh an increase from the earlier Rs. 10 lakh limit.
- For businesses providing services/mixed services registering under the GST composition scheme, the tax rate will be 6% and applicable to businesses with an annual turnover limit of Rs. 50 lakhs.
- The limit for composition scheme registered businesses has been increased to Rs. 1.5 crore with effect from 1st April 2019. Additionally, while returns will have to be filed by composition businesses on an annual basis, tax will be payable on a quarterly basis.
- The GST council has also allowed the Kerala government to levy a 1% calamity cess for 2 years on products and services. The proceeds from this cess will be utilized for rehabilitation on the state.
The new measures are expected to mainly benefit smaller businesses with low turnover and also the state of Kerala, which was devastated by floods recently. This time around no rate change notifications were made with respect to any goods and services hence no immediate measurable benefit is expected for end users.