Boost for SMEs: Exemption limit for GST hiked to Rs 40 lakh from Rs 20 lakh

Briefing the media after the 32nd meeting of the GST Council, Union finance minister Arun Jaitley said that the limit for composition scheme has been increased to Rs 1.5 crore. Businesses under the scheme will now pay tax on a quarterly basis but the returns will be filed annually, Jaitley added. The finance minister also stated that the council has approved composition scheme for the services sector. The GST council is headed by Jaitley.

In a major relief to the small businesses, Jaitley said that the exemption limit under GST (Goods and Services Tax) for those with a turnover up to Rs 20 lakh has been increased to Rs 40 lakh. For other states with up to Rs 10 lakh turnover, the limit is now increased to Rs 20 lakh, he added. For Kerala, the finance minister said that the state is now entitled to intra-state trade and can impose a cess of maximum 1 per cent for a period of two years.