GST Council to meet on January 10: Here's what SMEs, MSMEs, home buyers can expect
While for small service providers, the Council may announce a flat 5 percent GST.
New Delhi: The GST Council in its meeting on January 10 will discuss on the recommendations of the two ministerial panels.
The GST Council may also announce more relief to MSMEs sector by announcing extension of threshold exemption for such businesses. Currently, businesses with turnover of up to Rs 20 lakh are exempt from the Goods and Services Tax (GST) which can be hiked upto Rs 50 lakh.
For small business enterprises, the all powerful Council may recommend to increase the limit of composition scheme to Rs. 1.5 crore. Service providers may also be included in the composition scheme. The council is expected give benefits of composition scheme to service providers whose annual turnover is upto Rs 50 lakh.
While for small service providers, the Council may announce a flat 5 percent GST though these businesses may not get the benefits under Input Tax Credit.
The GST council may also deliberate upon recommendations of home buyers and developers alike. It may reduce the GST on under construction properties from 12 percent to 5 percent, though the developers will not get benefits of Input Tax Credit.
The ministerial panel under Bihar Deputy Chief Minister Sushil Modi that approved levy of 1 percent 'calamity cess' by Kerala for a period of two years to fund rehabilitation work in the state hit by floods, may get GST Council's green nod.
The Council may also deliberate on suggestions that dealers under the composition schemes be allowed to file returns annually, even as they would continue to pay their taxes. Currently, composition scheme dealers file returns and pay taxes quarterly.
It may also discuss the suggestion by GoM that businesses with turnover of up to Rs 1.5 crore be provided with a free accounting and billing software by the GST Network.