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Just few days back, in the 31st meeting of GST Council, Government has reduced the GST rates on various products and now the NDA government has given a major sop to the taxpayers by doubling the GST Exemption Limit for payment of GST and compliance from Rs 20 lakhs per year to Rs 40 lakh.
In this article, we would discuss the new exemption limits for GST Registration for small taxpayers or micro, small and medium enterprises (MSMEs).
Before discussing the new limits in details, let us get familiar with a few topics which would make the understanding better.
Table of Contents
Every supplier shall be liable to get registered under GST Law in the State from where he/she makes a taxable supply of goods and/or services if his/her aggregate turnover exceeds specific thresholds limits which we will discuss later in this article.
Any individual or person with the aggregate turnover not exceeding Rs. 75 lakhs and for an amount of Rs. 50 Lakhs for North Eastern States shall be eligible to pay tax by composition scheme.
Now coming back to the decision which was taken in 32nd GST Council Meeting on January 10, 2019, the Government has given a massive relief to small businesses.
The tax rates, rules and regulations for GST are completely governed by the GST Council which consists of the finance ministers at centre and all the states.
It is the governing body of GST having 33 members which is chaired by the Union Finance Minister.
The GST Council has doubled the GST Exemption Limit from payment of goods and services tax (GST) to Rs 40 lakh. Earlier it was Rs. 20 lakh.
Also, for the north-eastern states, the exemption limit has been increased to Rs 20 lakh from earlier Rs 10 lakh.
Further decisions which were taken are as follows:
The council has decided to form a seven-member group of ministers on the GST rate for real estate sector as after differences of opinion emerged during the meeting.
The GST Council is providing lot of benefits to the common citizens of India by such endeavors. Well the decision of GST Exemption Limit might seem to be a political motive or any other reason; it is definitely proving a boon to the people. Let’s just hope more such benefits are underway.
Mr. Neelansh Gupta is a Legal Counsel having extensive in-depth knowledge of various laws. He has completed his graduation in law and has experience in IPR, Taxation and Corporate laws.
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