In a bid to give relief to small businesses, the GST Council at a meeting concluded today has raised the threshold for availing Composition Scheme with turnover up to 1.5 crores. Also, Service Providers may be able to avail composition scheme starting April 1 2019.
It also doubled the exemption limit while raising the threshold for availing the composition scheme. The twin move would give relief to micro, small and medium enterprises (MSMEs).
Key take aways from the Council meet for your view:
The GOM set up early in October headed by Assam Finance Minister Himanta Biswa Sarma, had recommended that the threshold limit of the composition scheme, that allows small businesses to pay taxes at a lower rate without availing any input tax credits, be raised to Rs 1.5 crore from Rs. 1 crore curently.
A GOM was tasked with revisiting the tax structure of different categories of restaurants with the aim of rationalising or reducing the rates, apart from making composition scheme more attractive for businesses.
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