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GST Council meet: Relief for small traders, manufacturers

Jan 10 (AZINS) In its 32nd meeting, the GST Council agreed to raise the composition scheme limit to 1.5 crores, union finance minister Arun Jaitley informed. The new limit will be effective from April 1, 2019.

"Those who come under the composition scheme will pay tax quarterly, but the return will be filed only once a year. Council approved composition scheme for Services," Jaitley said.

The council has also increased the exemption limit for GST for those with a turnover up to Rs 20 lakh to Rs 40 lakh.

The council has allowed the state of Kerala to impose a cess of up to 1 per cent on intrastate sales for two years, FM Arun Jaitley said.

Jaitley further informed that the GST composition limit for services is now set at Rs 50 lakh.

"Services and goods providers will get the benefit of composition tax", Jaitley assured.

"A committee has been set up to consider real estate GST rates," the finance minister informed.

He further added, "The GST Council will mull further rate cut only if revenue will increase".

Meanwhile, Sushil Kumar Modi targeting Congress said that the Congress ruled states are opposing every move of Council giving relief to MSME & small traders.

Earlier, trader's body Confederation of All India Traders (CAIT), in a letter sent to the Union Finance Minister Arun Jaitley on Wednesday, suggested to levy "three-stage" GST instead of the current multi-stage tax system.

The CAIT said the taxes subsumed in value of the goods will encourage consumers to obtain Bills, which will augment the revenue.

"The efforts of the government to simplify and rationalise the tax structure is appreciable. But at the same time, the dip in the revenue collection is a matter of concern. Therefore, a mechanism is needed for easy collection of taxes by the traders and also more revenue could be generated," it said.