Providing relief to small traders, the Goods and Services Tax (GST) Council on Thursday decided to exempt businesses with turnover of Rs 40 lakh, raising the threshold from Rs 20 lakh.
It also decided to increase the Composition Scheme limit to Rs 1.5 crore from April 1.
However, no decision was taken regarding the real estate sector and supply of services by small service providers like lotteries in some states.
These issues will be examined by a Group of Ministers (GoM) and will be taken up in the GST Council meeting, Union Finance Minister Arun Jaitley told reporters.
Briefing on the GST Council meeting held here on Thursday, he said the GST exemption limit was raised from Rs 20 lakh to Rs 40 lakh.
In small states and hilly states like Jammu and Kashmir and North East, the limit has been raised from Rs 10 lakh to Rs 20 lakh. These states, however, will be free to raise the limit further, if they desire.
Most of GST comes from micro, small and medium enterprises (MSMEs), said the Finance Minister.
Referring to the Composition Scheme, he said the limit was raised to Rs 1.5 crore and those who come under its purview will pay tax quarterly, but the return will be filed only once a year,
The Council also approved the Composition Scheme for services.
Hence, services and goods providers will get the benefit of the Composition Tax, Jaitley said.
The Composition Scheme will reduce the compliance burden, he said.
Asked about GST on construction-related material like cement, the Finance Minister said the rate on individual items like cement will depend on revenues generated.
At present, the GST slab for 8 items of cement industry is under 28 per cent slab.
In an interview to ANI earlier this month, Prime Minister Narendra Modi said the government is in favour of bringing construction-related material in the 5 per cent slab of GST.
The construction sector is one of the largest employment generators in the country.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)