A number of goods and services tax regime amendments, intended to simplify compliance for traders, will become effective in India from April 1, 2019.

The Indian Government has issued three separate notifications to confirm the introduction of three measures approved by the GST Council at its 32nd meeting in January 2019.

The first measure is the introduction of higher exemption threshold limits for supplier of goods. There will be two threshold limits for exemption from registration and payment of GST for the suppliers of goods, of INR4m (USD57,530) and INR2m. States would have an option to decide about one of the limits. The threshold for registration for service providers would continue to be INR2m and in the case of special category states INR1m.

Further, a composition scheme will be made available for suppliers of services (or mixed suppliers) with a tax rate of six percent (three percent CGST plus three percent SGST) having an annual turnover in the preceding financial year of up to INR5m.

Finally, the limit of annual turnover in the preceding financial year for access to the composition scheme for goods will be increased to INR15m. Special category states may decide about the composition limit in their respective states.

Published On : 14-03-2019

Source : Tax-News