11 January 2019

Decisions of the 32nd GST Council Meeting and extension in MVAT Audit due date


The key decisions of the 32nd GST council meeting held on 10 January 2019 in New Delhi are given below
  • Multiple threshold limit for GST registration - Supplier of Goods 
    • The GST council has decided to introduce two threshold limits - 20 Lakhs and 40 Lakhs for GST registration for a supplier of goods
    • States have an option to select one of the above limits within a week
    • It should be noted that the threshold for service providers would remain the same as earlier.
  • Composition scheme
    • The threshold for manufacturers and traders of goods increased 
      The threshold limit for the composition scheme for manufacturers and traders of goods would be increased from the INR 1 crore to INR 1.5 crore w.e.f 1 April 2019.
    • Composition scheme for service providers (other than restaurant services) introduced
      A new Composition scheme would be introduced w.e.f 1 April 2019 for service providers as well as suppliers of mixed supplies (of goods and services) with a turnover in preceding financial year up to INR 50 lakhs. The tax rate will be 6% (3% CGST + 3% SGST). 
    • Simplification of compliances
      Composition dealers would be required to file one annual return and pay taxes quarterly along with a simple declaration from 1 April 2019.
  • 1% cess for Kerala intra-state supplies
    The GST council has approved to charge 1% cess on the intra-state supply of goods and services within Kerala for a period not exceeding two years.

MVAT Update
MVAT Audit due date has been extended to 28 February 2019 for the period 1 April 2017 to 30 June 2017. (The earlier due date was 15 January 2019.)

 
SKP's Comments
The decision taken in the 32nd GST council meeting aids huge comfort to small and medium-sized enterprises. Also, it can be seen that the government is encouraging taxpayers to opt for composition scheme and take benefit of the simplified compliance system.
 
SKP
Urmi Axis | 7th Floor | Famous Studio Lane | Mahalaxmi | Mumbai | 400 011 | India
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skp.gst@skpgroup.com | www.skpgroup.com

 
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