All Updates on 32nd GST Council Meeting On Threshold Limit & Composition Traders

32nd GST council meeting latest updates directly from major resources under which decisions on some major points including the GST threshold limit, GST rate fixed for composition scheme taxpayers along with annual return filing process taken.

32nd GST council meeting has been discussing for further announcements and decisions. The council has also decided on tax exemption for the small and medium enterprises by increasing GST threshold limit.

All Updates on 32nd GST Council Meeting in New Delhi

  • Committee set up for real estate sector to go through the issues and submit a report
  • GST Council permits the Kerala Govt to levy 1 per cent calamity cess for 2 years to collect funds for rehabilitation
  • 6 per cent GST rate applicable to the Composition scheme for service providers and turnover up to 50 lakh per annum.
  • The registration threshold limit under GST increased from earlier INR 20 lakh to INR 40 lakh. Kerala & Chattisgarh given option to remain in any limit either 20 lakh or 40 lakh. Also, Northeastern and hilly states threshold limit doubled more than 20 lakhs.
  • It was also announced that a free billing and cost accounting to be made available for the small taxpayers to reduce compliance cost.
  • GST Council increased the limit of annual turnover for composition scheme taxpayers to 1.50 Crores, effectively from 1 April 2019 under which the composition taxpayers allowed to file returns annually and pay tax on a quarterly basis.
  • The meeting has been started at the Vigyan Bhawan, Delhi chaired by the Union finance minister Arun Jaitley and state wise finance ministers.

Comments ( 23 )
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  • RAKESH SOOD

    As per the council meeting in January 2019 composition tax for services below 50 lakh is to be taxed at 6% does it apply to hotels as well”

    • SAG Infotech

      As you are providing hotel services, so according to recent amendments by CBEC, First supplies of goods or services or both up to an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person, can opt for composition scheme and will pay tax @ 6%.

  • Bhavadas.M

    Ours is a Tyre re-treading company. and our Turnover will be below 50 Lacs. Can We opt for Compounding Tax and what is the rate of tax? Please advise.

    • SAG Infotech

      Please clarify whether you are providing any job worker services or you are registered as a manufacturer.

      • Ramakrishnan Vethachalam

        Can a hospital avail ITC on the purchase of medical equipment?

  • D. Ashok Babu

    Sir,

    I want to know what is the GST percentage on comprehensive Annual Maintenance contract on Air condition in the organisation.

    • shekahr

      We can GST input claim of Panel (fire fighting pump panel )

  • Victor

    When will next GST council meet? I am awaiting booking an apartment so that I can avail the reduced GST benefit.

  • Victor

    I am planning to finalise an apartment in the next few weeks. But would prefer to see if GST on under construction property is reduced by the council. When will the next 33rd GST council meeting plan? Also in case, I finalise the apartment booking before that, will I be able to avail the benefit of reduced GST once it is announced?

  • PALANISAMY.V

    We are running a homestay service Valparai hill station. Room rent ranging from INR 990 to INR 6500/ per night. Annual turnover will be around Rs. 6,00,000/=. Is it required to continue with GST registration? Whether we have to remit GST or not required. Please advice.

  • PALANISAMY

    We are running a home stay service, annual turnover will be around 6 lakhs, whether we have to remit GST or we can file nil return?

  • satya v v

    As per 32nd Council meet, it is understood that Registered dealers falling under MSME definition are only eligible for the benefit of increased turnover limit for registration. What is applicable MSME definition as of now? I came to know that there is a proposal for change of MSME definition from the concept of investment in plant and machinery to gross receipts. Could you pl update in the light of the MSME definition? If the old definition is still in force, then all the professionals whose investment in plant and machinery i.e A/C and other fittings are less than the prescribed limits would be covered for the enhanced turnover limits?

    • SAG Infotech

      Nothing has been notified in this regard. It is only recommended at the council meeting. the same shall be applicable only after notification.

  • Bhadresh Parmar

    As per 32nd GST council meeting. Is I fall under 20 lakh turnover but I supply goods to clients in other states. Can I cancel the GST registration?

    Regards
    Bhadresh Parmar

  • Shri Krishan

    “A composition scheme shall be made available to the supplier of services (or mixed suppliers) having Annual Turnover in the preceding Financial Year up to Rs.50 lakhs. Tax rate will be 6% (3% CGST +3% SGST).”:

    Will Chartered Accountants, Service Providers, get the benefit of this proposed Amendment?

    Regards
    Advocate Shrikrishan
    B.Com., MBA, LLB

    • SAG Infotech

      Yes, they will be benefited as now they can opt for composition scheme.

    • sanchit gupta

      If the majority of the clientele is registered under GST, then definitely the proposed composition scheme for service providers shall not be of any use as the clients would rather prefer obtaining a regular tax invoice to claim an input tax credit

  • GANAPATHY K

    If automotive tyre, tube and flap are sold in SET (which is the practice followed for decades) the GST rate is 28%. If Tube and Flap are sold in a loose condition, the rate is 18%. How can one item have two different rates? There should be a different HSN code for THE SET OF TYRE, TUBE AND FLAP to avoid this problem, especially for Tally users. Do you have a better suggestion, Sir? Thanks

    • SAG Infotech

      There is different HSN code for three items. But if you sold them in the set, such supply shall be considered as mixed supply and rate of GST shall be higher of three i.e. 28%, but if they are sold in loose condition each will attract a different rate of its own. In both, the condition only tax rate changes but HSN code are different for all three.