The finance minister however ruled out any more cuts under the indirect tax system until revenues improve
New Delhi: On bonanza spree ahead of the 2019 General Elections, the Narendra Modi government in New Delhi on Thursday raised the annual turnover for availing composition scheme to Rs 1.5 crore from Rs 1 crore effective April 1, 2019 and also doubled the GST expemtion limit.
“Those who come under the composition scheme will pay tax quarterly, but the return will be filed only once a year. The GST exemption limit has been doubled to Rs 40 lakh annual turnover and Rs 20 lakh for northeastern states”, Union Finance Minister Arun Jaitley said after the meeting of GST Council in New Delhi Thursday.
“The twin move would give relief to micro, small and medium enterprises (MSMEs)”, Jaitley said.
According to news agency PTI, the GST council also allowed Kerala to levy 1 per cent calamity cess on intra-state sales for a period of up to two years.
“On including real estate and lottery under the Goods and Services Tax (GST), the council decided for form a seven-member group of ministers after differences of opinion emerged at the meeting”, the minister said.
The finance minister however ruled out any more cuts under the indirect tax system until revenues improve. The decision to hold rate cuts under GST comes in the backdrop of shrinking collections under the indirect tax.
“We will consider any further reductions on individual items only when revenues move up,” he said.
The GST council had earlier reduced the GST rates for a number of items under the 28% slab.
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