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The GST Council on January 10 has reviewed the GST law so that business with annual sale up to Rs 40 lakh will not have to pay GST. The upper limit for GST exemption at present is Rs 20 lakh.

Besides this one, the GST Council headed by Union Finance Minister Arun Jaitely has “accorded massive relief” to small businesses. Compliance has been simplified and the Composite scheme has been modified.

“The exemption limit for GST of goods has been increased to 40 lakh from Rs20 lakh.” said Arun Jaitely.”For the North –East and the hilly states, the exemption limit has been increased from Rs 10 lakhs to 20 Lakhs.” For the service provider, the new exemption limit will continue to be Rs20 lakhs, in the north –east and hilly states it will be Rs10 lakhs.

To ease the compliance burden, the GST system will now have provision of once- a- year annual return and thrice- a- year tax payment.

“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.” Tweets Jaitely.

The limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore.

Mr. jaitely said that a new composite scheme has been introduced for service sector and for mixed transactions of goods and services with a turnover limit of Rs 5o lakhs at 6% GST.


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