The government Thursday notified April 1 as the date for the
implementation of doubling of GST exemption limit to Rs 40 lakh, which
will benefit small and medium enterprises.
Besides, the effective
date for availing higher turnover cap of Rs 1.5 crore for availing
composition scheme by traders has also been fixed as April 1.
Also,
service providers and suppliers of both goods and services with a
turnover of up to Rs 50 lakh
would be eligible to opt for the GST
composition scheme and pay a tax of 6 per cent from the beginning of
next fiscal.
These decisions were taken by the GST Council,
chaired by Finance Minister Arun Jaitley and comprising his state
counterparts, on January 10. These decisions would come into effect from
April 1, a finance ministry statement said.
"There would be two
threshold limits for exemption from registration and payment of GST for
the Suppliers of Goods i.e. Rs 40 lakhs and Rs 20 lakhs. States would
have an option to decide about one of the limits.
"The Threshold
for Registration for service providers would continue to be Rs 20 lakhs
and in case of Special Category States Rs 10 lakhs," it said.
Also
the GST Composition Scheme, under which small traders and businesses
pay a 1 per cent tax based on turnover, can be availed by businesses
with a turnover of Rs 1.5 crore, against the earlier Rs 1 crore, with
effect from April 1.
EY India Tax Partner Abhishek Jain said
implementation of these proposals with specifically the higher turnover
limit for composition schemes, would aid enhancing the ease of doing
business for MSMEs.