GST exemption limit doubled for small businesses

On including real estate and lottery under the Goods and Services Tax, the GST council decided for form a seven-member group of ministers.

In a bid to give relief to small businesses, the GST Council Thursday doubled the exemption limit and raised the threshold for availing the composition scheme.

Finance minister Arun Jaitley said the GST council also allowed Kerala to levy 1 per cent calamity cess for two years.

The GST Council doubled the GST exemption limit to ₹20 lakh for north eastern states and ₹40 lakh for the rest of the country, Finance Minister Arun Jaitley told reporters here.

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 raised to ₹1.5 crore from ₹1 crore.

The twin move would give relief to 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.