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Double exemption in GST: Small businesses relaxed

The GST council doubled the exemption limit and raised the threshold for availing the composition scheme in a bid to give relief to small businesses on Thursday. The GST Council doubled the GST exemption limit to Rs 20 lakh for north eastern states and Rs 40 lakh for the rest of the country, Finance Minister Arun Jaitley told reporters here.

The scope of the GST Composition Scheme under which the small traders and the businesses pay a small tax based on the turnover rather than the value addition which was raised to 1.5 crore from 1 crore. The twin move would give relief to the micro, small and medium enterprises (MSMEs), he said.

The 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, the council decided for form a seven-member group of ministers after differences of opinion emerged at the meeting, he said.

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