The 32nd GST Council Meeting : Highlights

The council meeting was scheduled for 10th Jan 2018 under the chairmanship of Arun Jaitely (Finance Minister of India). The Goods and Services Tax (GST) council, at its 32nd meeting held last week, announced several changes. The new limit for gst registration would be Rs40 lakh. This has been hailed as a major decision to help small taxpayers go out of the tax net and, hence, the related compliance’s and costs. However, this limit has come with far too many complications, as explained below, and a small businessman will have to take help of a tax expert before deciding whether to avail this exemption limit or continue to be in GST regime. No big changes in GST Rate until the revenue spikes. The main issues, which will have to be kept in mind are as follows:

1) GST REGISTRATION

Basic exemption limit to be increased from Rs 20 lakhs to Rs 40 lakhs. The limit for registration which is currently at Rs 10 lakhs for special category States is increased up to Rs 20 lakhs. States like Chattisgarh and Kerala have been given an option to revise threshold limits for their States.

2) New Composition scheme for Services providers

Basic exemption limit to be increased from Rs 20 lakhs to Rs 40 lakhs. The limit for registration which is currently at Rs 10 lakhs for special category States is increased up to Rs 20 lakhs. States like Chattisgarh and Kerala have been given an option to revise threshold limits for their States.

3) Changes to existing Composition scheme

Increase in the limit to opt into the scheme will be increased up to Rs 1.5 crore with GST Rate of 1% effective from 1st April 2019.

4) Consensus received for charging calamity cess in Kerala

Increase in the limit to opt into the scheme will be increased up to Rs 1.5 crore with GST Rate of 1% effective from 1st April 2019.

5) GST Rate Cuts

  • No changes in GST Rates until Revenue spikes, recommended by the GST council
  • No changes for under construction flats. A group of minister will be formed to study on reducing rates from 12% to 5%of such under construction property