Happy New Year 2019 ! With the very first GST council meet of this year some favorable and important decisions taken in its 32nd GST council meet held on 10th Jan 2019 they are as follows –
Threshold limit increased to 40 Lakhs– Effective from April 1, the GST exemption threshold has been raised from Rs 20 lakh to Rs 40 lakh. For hilly states and those in the North East, the threshold has been doubled to Rs 20 lakh. A relief for mid scale companies
States given powers -For choosing if they want to sustain the threshold exemption at Rs 20 Lakh or Rs 40 Lakh
Turnover Limit under Composition scheme increased – Increase in the limit to opt into the scheme will be increased up to Rs 1.5 crore effective from 1st April 2019. Quarterly pay of taxes but filing of return annually.
Composition benefit extended to a category of service providers – Suppliers rendering either independent services or providing a mixed supply of goods & services with a turnover of up to Rs 50 lakhs p.a can join this scheme, where the tax rate is fixed at 6%.
Real Estate sector – A committee has been set up to consider real estate GST rates
Calamity cess – A cess rate of 1% by Kerala state to be imposed on intra state sales for a period of 2 years