New Delhi: The all powerful GST Council has agreed on recommendations to increase the turnover limit for biz availing composition scheme at its crucial 32nd meeting on Thursday.
The GST Council meeting, which is still underway, is discussing on the recommendations of the two ministerial panels.
The ministerial panel under Minister of State for Finance Shiv Pratap Shukla had suggested to the Council to allow businesses with turnover of up to Rs 1.5 crore to avail composition scheme, up from the current Rs 1 crore.
Zee Media sources said that the new rule will come to effect from April 1, 2019.
Sources also added that the GST Council has agreed that dealers under the composition schemes can now file returns annually, even as they would continue to pay their taxes. Currently, composition scheme dealers file returns and pay taxes quarterly.
It has also agreed on giving relief to MSMEs under the goods and services tax, deliberated on the exemption threshold for such businesses. Currently, businesses with turnover of up to Rs 20 lakh are exempt from the Goods and Services Tax (GST). The Council has decided to hike the turnover to up to Rs 40 lakh, sources told Zee Media.
GST Council is also discussing recommendation of ministerial panel under Bihar Deputy Chief Minister Sushil Modi for levy of 1 percent 'calamity cess' in line with Kerala.
While the GoM on MSME was constituted in August last year, the same for 'calamity cess' for set up in September.