The exemption threshold for mandatory registration for supplier of goods has been increased from Rs 20 Lakhs to Rs 40 Lakhs and will be effective from 1stApril, 2019. But for supplier of services this limit remains Rs 20 Lakhs and Rs 10 Lakhs in special category states.
In case of Hilly states and North Eastern States, the threshold for supplier of goods has been increased from Rs 10 Lakhs to Rs 20 Lakhs. Further, States can decide if they want to maintain the exemption limit at Rs 20 Lakhs or Rs 40 Lakhs in a week.
Changes in composition scheme
The limit of annual turnover to opt into the composition scheme increases upto Rs 1.5 Crores effective from 1stApril, 2019.
The composition taxpayers shall pay GST quarterly and file returns annually from 1stApril, 2019.
New composition scheme for service providers
The provider of services and those who render mixed supplies of goods and services with an annual turnover upto Rs 50 Lakhs in the informal sector in the preceding financial year will be entitled to composition scheme under the GST regime.
The GST rate is fixed at 6% (3% CGST + 3% SGST).
Imposition of calamity cess in Kerala
Kerala has been allowed to charge calamity cess of upto 1% on all the intra-state supplies of goods and services within Kerala for a maximum of 2 years. This has been allowed to cope up with the natural calamities faced by Kerala last year.
Decision pending on GST on real estate and uniformity of taxation on lottery
GST rate on under construction flat or ready-to-move-in flats whose completion certificate has not been issued at the time of sale is still 12% and has not reduced.
Further, a seven-member Group of Ministers (GoM) has been formed to look into the GST on real estate.
No GST rate cuts on the Private lottery distributions. And another GoM with representation from lottery developing and selling states will be formed for uniformity of taxation on lottery or any other issue arising out of lottery.
Free accounting and billing software will be made available to small taxpayers with annual turnover of Rs 1.5 Crores.
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