32nd GST Council Meet: Exemption Limit Increased to Rs 40 Lakh
At the 32nd GST Council meet, the Council decided against reduction of rates, even as it was expected to do so.
The 32nd GST Council meet was held on Thursday, 9 January, where the Council decided against reduction of rates, even as it was expected to do so.
“We will consider further reduction only when revenues move up,” Finance Minister Arun Jaitley said at a press briefing after the meeting.
In a major decision, exemption limit for GST for those with a turnover up to Rs 20 lakh has been increased to Rs 40 lakhs.
Apart from that, from 1 April 2019, composition scheme limit will be increased to Rs 1.5 crores. Those who come under the composition scheme will now pay tax quarterly, but the return will be filed only once a year. The council approved composition scheme for Services.
Two separate Groups of Ministers (GoM) were set up for decision on GST on real estate and lottery tickets.
The 32nd meeting of the council was chaired by the finance minister.
The council, in its previous meeting on 22 December 2018, had rationalised the 28 percent tax slab and reduced rates on 23 goods and services.
Jaitley had earlier said that Thursday’s meeting would consider rationalisation of tax rates on residential properties and raising the threshold limit for micro, small and medium enterprises from the current Rs 20 lakh, during a media briefing after the recent council meeting.
Currently, the Goods and Services Tax is levied at 12 percent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.
Also, the report of group of ministers looking into the concerns of MSMEs under the GST regime was taken up for consideration.
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