Highlights of the 32nd GST Council Meet

The 32nd GST Council took major decisions to entice the informal sector specifically,  MSMEs, small traders and the service sector. Here are the key highlights of the meet:

GST Registration

Basic exemption limit to be increased from Rs 20 lakhs to Rs 40 lakhs. The limit for registration which is currently at Rs 10 lakhs for special category States is increased up to Rs 20 lakhs. States like Chattisgarh and Kerala have been given an option to revise threshold limits for their States.

New Composition scheme for Services providers

Those suppliers rendering either independent services or providing a mixed supply of goods & services with a turnover of up to Rs 50 lakhs p.a can join this scheme, where the tax rate is fixed at 6%

Changes to existing Composition scheme

• Increase in the limit to opt into the scheme will be increased up to Rs 1.5 crore effective from 1st April 2019.

• Tax to be paid Quarterly and GST Returns to be filed annually.

Consensus received for charging calamity cess in Kerala

Kerala has been given an approval to charge Disaster/calamity cess at 1% on all the intra-state supplies within Kerala, for up to two years

GST Rate Cuts

• No changes in GST Rates until Revenue spikes, recommended by the GST council

• No GST rate cut on the sale of under construction flats. Instead, a 7 member group of ministers is formed to study the implications of reducing the rates from 12% to 5% on the supply of such under construction properties.

• Further, No GST rate cuts on the Private lottery distributions. A Group of ministers will be formed with representatives from developing and selling states