Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Thursday, January 10, 2019

GST - Changes in Turnover Threshold and Composition Scheme

The GST Council held its 32nd meeting on 10-Jan-2019 and took the following decisions.

Changes in Composition Scheme

Increase in turnover threshold: The limit of annual turnover in the preceding financial year for availing composition scheme for goods shall be increased from the existing Rs. 1 crore to Rs 1.5 crore. Special category States will decide, within one week, about the composition limit in their respective States.

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 preceding financial year up to Rs 50 lakhs.

The said scheme 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.

Reduced Compliance: File only one annual return. However, payment of taxes would remain quarterly along with a brief declaration.

Changes for Regular Dealers

Higher Exemption Turnover Threshold for Goods Supplier: 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.

Turnover Threshold for Service Providers: The threshold for registration for service providers would continue to be Rs 20 lakhs and in case of Special category States Rs 10 lakhs.

Effective Date

The above changes shall be made operational from the 1 st of April, 2019.

Other Proposed Matters for Future

1. Free Accounting and Billing Software shall be provided to small taxpayers by GSTN.
2. Composition scheme for residential real estate sector.
3. GST rate structure on lotteries.

Revenue mobilization for natural calamities: GST Council 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.

These changes would be given effect to through Gazette notifications/circulars in a few days.

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