32nd GST Council Meeting held on 10th January, 2019 under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley in New Delhi gave major relief to MSME (including Small Traders). Following significant decisions were taken in the meeting:
1. Increase in Turnover Limit for the existing Composition Scheme:
The limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the Composition Limit in their respective States.
As simplification of compliance, only one Annual Return will be needed to be filed. However, payment of taxes would remain Quarterly, along with a simple declaration.
2. Higher Exemption Threshold Limit for Supplier of Goods:
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 within a weeks’ time. The Threshold for Registration for Service Providers would continue to be Rs 20 lakhs and in case of Special Category States at Rs 10 lakhs.
3. Composition Scheme for Services:
A Composition Scheme shall be made available for Suppliers of Services (or Mixed Suppliers) with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the preceding Financial Year up to Rs 50 lakhs. This shall be applicable to both Service Providers as well as Suppliers of Goods and Services, who are not eligible for the presently available Composition Scheme for Goods.
One Annual Return shall be filed with Quarterly Payment of Taxes, along with a Simple Declaration.
These decisions regarding Composition Scheme shall be made operational from the 1st of April, 2019.
4. Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN.
In addition to this, it has been decided that Group of Ministers shall examine the proposal of giving a Composition Scheme to Boost the Residential Segment of the Real Estate Sector and GST Rate Structure on Lotteries. GST Council also approved Levy of Cess on Intra-State Supply of Goods and Services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.
The Council also gave approval for the following:
a. Changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, notifications and Circulars issued earlier and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.
b. The last date for passing the examination for GST Practitioners to be extended till 31.12.2019 for those GST Practitioners who have enrolled under rule 83(1)(b) i.e. who were sales tax practitioner or tax return preparer under the existing law for a period of not less than five years.
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