Business / FinMin notifies April 1 as date for availing increased GST exemption limit, composition scheme

The government Thursday notified April 1 as the date for the implementation of doubling of GST exemption limit to Rs 40 lakh, which will benefit small and medium enterprises. The effective date for availing higher turnover cap of Rs 1.5 crore for availing composition scheme by traders has also been fixed as April 1. Service providers & suppliers of both goods & services with a turnover of up to Rs 50 lakh for GST.

Besides, the effective date for availing higher turnover cap of Rs 1.5 crore for availing composition scheme by traders has also been fixed asApril 1.

Also, service providers and suppliers of both goods and services with a turnover of up to Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 per cent from the beginning of next fiscal.

These decisions were taken by the GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, on January 10. These decisions would come into effect from April 1, a finance ministry statement said.

"There would be two threshold limits for exemption from registration and payment of GST for the Suppliers of Goods i.E. Rs 40 lakhs and Rs 20 lakhs. States would have an option to decide about one of the limits.