NEW DELHI: The government Thursday notified 1 April as the date for the implementation of doubling of GST exemption limit to ₹40 lakh, which will benefit small and medium enterprises.
Besides, the effective date for availing higher turnover cap of ₹1.5 crore for availing composition scheme by traders has also been fixed as 1 April.
Also, service providers and suppliers of both goods and services with a turnover of up to ₹50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6% from the beginning of next fiscal.
These decisions were taken by the GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, on 10 January. These decisions would come into effect from 1 April, a finance ministry statement said.
"There would be two threshold limits for exemption from registration and payment of GST for the Suppliers of Goods i.e. ₹40 lakhs and ₹20 lakhs. States would have an option to decide about one of the limits.
"The Threshold for Registration for service providers would continue to be ₹20 lakhs and in case of Special Category States ₹10 lakhs," it said.
Also the GST Composition Scheme, under which small traders and businesses pay a 1% tax based on turnover, can be availed by businesses with a turnover of ₹1.5 crore, against the earlier ₹1 crore, with effect from 1 April.
EY India Tax Partner Abhishek Jain said implementation of these proposals with specifically the higher turnover limit for composition schemes, would aid enhancing the ease of doing business for MSMEs.