GST Council in the 32nd meeting held on January 10, 2019 at New Delhi took following decisions to give relief to MSME (including small traders), are as follows:
Composition Scheme for Normal Taxpayer
- 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 from Rs. 1 crore to Rs 1.5 crore. Special category States would decide, within one week, about the composition limit in their respective States.
- Compliance simplification: The compliance under composition scheme shall be simplified as now they would need to file one annual return, but payment of taxes would remain quarterly (along with a simple declaration).
Composition scheme for Services Provider with a Tax Rate of 6%:
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 upto 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 under present composition scheme for goods. However, such service provider would be liable to file one annual return with quarterly payment of taxes along with a simple declaration.
These above revised limits shall be made effective from the April 1, 2019
Press Release can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2019/01/Press-release-MSME-10012019.pdf