GST council meet: Relief to MSMEs, GST Composition Scheme raised to ₹1.5 crore
The GST Council has raised the threshhold limit for eligibility under the GST Composition Scheme to ₹1.5 crore, from ₹1 crore
In a further relief to the micro, small and medium (MSME) sector, the threshhold limit for eligibility under the GST Composition Scheme was raised to ₹1.5 crore, from ₹1 crore, by the GST Council on Thursday and will apply from the 2019-20 fiscal beginning April 1.
"We had raised the Composition Scheme limit to ₹1.5 crore. The decision will be applicable from April 1, 2019," Finance Minister Arun Jaitley told reporters here after chairing the 32nd meeting of the GST Council.
Those opting for the Composition Scheme pay a minimal Goods and Services Tax (GST) of 1%.
In an easing of the compliance burden, the GST Council also decided that those opting for the scheme would need to file their returns only once a year, Jaitley said. The tax payment mode, however, would continue to be on a quarterly basis.
This facility will also be also applicable from April 1.
In a third decision, the GST Council also made small service providers, and those providing a mix of goods and services, with a turnover of up to 50 lakhs, eligible for the Composition Scheme.
With Thursday's decision, service and mixed goods and service providers will be entitled to avail the benefit on payment of GST at 6%, Jaitley said.