The GST Council in its 32nd meeting has decided to expand the GST exemption limit for the companies by twice. The GST Council chaired by finance minister Arun Jaitley announced to double the GST exemption limit for the companies from the current Rs 20 lakh to Rs 40 lakh of annual turnover.
The GST exemption limit for North East and hilly states has been increased from Rs 10 lakh to Rs 20 lakh. According to Arun Jaitley, this move will benefit the micro, small and medium enterprises (MSMEs).
The change in threshold is going to affect more than 20 lakh traders in the country. Jaitley added that the states will now be able to choose if they want to keep the GST exemption limit at Rs 20 lakh or Rs 40 lakh.
The GST council also brought in major changes in the composition scheme, with the current turnover limit increased from Rs 1 crores to Rs 1.5 crores. Also, the service providers with a turnover of up to Rs 50 lakh can now avail the composition scheme at a rate of 6%.
The GST council also granted approval to Kerala to levy a calamity cess of 1% on intra-state sales for a maximum period of two years.