Finance Minister Arun Jaitley, while Addressing a press conference after the 32nd GST Council meet announced that services sector will now be eligible for benefit under the composition scheme, which was only applicable to manufacturers and traders earlier.
He Announced 6 per cent composition scheme for the services sector i.e. Service taxpayers with earnings up to Rs 50 lakh per annum will be taxed at 6 percent.
Further, exemption limit for GST registration for micro, small and medium enterprises (MSMEs) has been doubled to Rs 40 lakh from Rs 20 lakh. which states that businesses with an annual sale/ turnover Upto Rs 40 lakh will now be exempt from GST.
Also, Annual composition limit has been raised to Rs 1.5 crore from Rs 1 crore, effective April 1, 2019. He Also added, that those who come under the composition scheme will pay tax quarterly, but the return will be filed only once a year.
The council has allowed the state of Kerala to impose a cess of up to 1 percent on intrastate sales for two years.
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