Boost for SMEs: Exemption limit for GST hiked to Rs 40 lakh from Rs 20 lakh

In a major relief to the small businesses, Jaitley said that the exemption limit under GST (Goods and Services Tax) for those with a turnover up to Rs 20 lakh has been increased to Rs 40 lakh. For other states with up to Rs 10 lakh turnover, the limit is now increased to Rs 20 lakh, he added. TIMESOFINDIA.COM  |  January 10, 2019, 15:42 IST

Highlights

  • The finance minister stated that the council has approved composition scheme for the services sector,
  • For Kerala, Jaitley said that the state is now entitled to intra-state trade and can impose a cess of maximum 1 per cent for a period of two years,
Boost for SMEs: Exemption limit for GST hiked to Rs 40 lakh from Rs 20 lakh NEW DELHI: In a big boost to the small businesses, Union finance minister Arun Jaitley on Thursday doubled the annual turnover exemption limit under GST to Rs 40 lakh. Currently, firms with an annual turnover of up to Rs 20 lakh are exempted from registration.

The finance minister said that the annual turnover for availing composition scheme has been increased to Rs 1.5 crore from Rs 1 crore, effective from April 1, 2019.

Businesses under the scheme will now pay tax on a quarterly basis but the returns will be filed annually, Jaitley added. He also stated that the council has approved composition scheme for the services sector. The GST council is headed by the finance minister.

For Kerala, the finance minister said that the state is now entitled to intra-state trade and can impose a cess of maximum 1 per cent for a period of two years.