Finance Minister Arun Jaitley/File
In order to give relief to small businesses, the GST Council on Thursday doubled the exemption limit and raised the threshold for availing the composition scheme.
"GST exemption limit has been doubled to Rs 20 lakh for north eastern states and Rs 40 lakh for the rest of the country," Union Finance Minister Arun Jaitley announced on Thursday.
Prime Minister Narendra Modi said the GST Council's decisions relating to small businesses will greatly help MSMEs, traders and the service sector and the government is committed to a simple and people-friendly GST.
"Commendable decisions taken by the GST council, which will greatly help MSMEs, traders and the services sector. We remain committed to a simple and people-friendly GST," Modi tweeted.
The scope of the GST Composition Scheme, under which small traders and businesses pay a small tax based on turnover rather than value addition, was also raised to Rs 1.5 crore from Rs 1 crore.
The twin move would give relief to micro, small and medium enterprises (MSMEs), he told reporters.
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.
