Key Highlights of 32nd GST Council Meet

On 10^th January 2019 (Thursday), under the chairmanship of Hon. Finance Minister Mr. Arun Jaitley, the 32^nd GST Council Meet took place in New Delhi.

Here are the Key Highlights of the 32^nd GST Council Meet

Increased Annual Turnover Limit for GST Registration

• Basic exemption limit for suppliers of goods shall be increased from ₹ 20 lakhs to ₹ 40 lakhs. However, the limit for suppliers of services shall remain ₹ 20 lakhs.
• While in special category states {i.e. North-Eastern states, Sikkim and hilly states (i.e. Himachal Pradesh, Uttarakhand and Jammu & Kashmir)} shall be increased from ₹ 10 lakhs to ₹ 20 lakhs. However, the limit for suppliers of services shall remain ₹ 10 lakhs.

Increased Annual Turnover Limit for Composition Scheme

• The limit of annual turnover in the preceding financial year for availing the benefits of composition scheme for goods shall be increased from ₹ 1 Crore to ₹ 1.5 Crore. Special category States would decide within one week, about the composition limit in their respective States.
• The Tax shall be paid quarterly while the GST Returns shall be filed annually.

New Composition Scheme for Service Providers

Suppliers rendering either independent services or providing a combined supply of goods and services with an annual turnover of up to ₹ 50 lakhs in the preceding financial year, now can join the new Composition Scheme for service providers for which 6% Tax rate has been fixed (3% CGST + 3% SGST).

Kerala Calamity Cess

Kerala has been given special approval for charging disaster/calamity cess of up to 1% on all Intra-State supplies of goods and services within the state of Kerala, for only up to a fixed period of two years.

Extension of Date for GST Practitioners Examination

The last date for passing the GST Practitioners examination for existing GST Practitioners has now been extended till 31^st 2019 (for those GST Practitioners who have already enrolled themselves under rule 83(1)(b) i.e. who were sales tax practitioner or tax return preparer under the existing law for more than five years).

Formation of GoMs (Group of Ministers)

Two GoMs has now been formed for further examination of GST on real estate and uniformity of taxation on the lottery and other such issues coming out of the lottery.

Of course, this 32^nd GST Council meet has brought some tremendous decisions keeping in view the ease of almost every sort of businesses. The council also declared that all the decisions will come into effect on and from 1^st April 2019. The Govt. has been making the whole GST concept easier and more convenient and this meeting can be considered as a milestone in the long run.