The GST Council in its 22nd meeting held at New Delhi on 6th October 2017, gave some big reliefs to SMEs by reducing their burden of compliance.
The new changes made by the GST Council is expected to be of great help for businesses in the MSME sector.
Let me give you the broad changes made by the Council in this regard.
- Composition scheme was only available to taxpayers who have annual turnover up to Rs. 75 lakhs before it was amended on 06th October, 2017. This amount has now been raised to Rs. 1 Crore and is available to taxpayers having annual aggregate turnover of up to Rs. 1 Crore. This turnover threshold is increased to Rs. 75 lakhs from the earlier limit of Rs. 50 lakhs for special category States excluding Jammu & Kashmir and Uttarakhand. For Jammu & Kashmir and Uttarakhand it will be the same as for other states i.e. Rs. 1 crore.
- Taxpayers under GST can opt in for this new threshold limit till 31st March, 2018. Both migrated taxpayers and new taxpayers can avail this scheme till that date.
- If you are a new taxpayer opting for this scheme – then you have to file GSTR-4 Return form for the quarter in which the scheme becomes operational in your case and you have to file returns as a normal taxpayer for the preceding tax period.
- As per this new notification, even persons who were considered ineligible for availing the composition scheme as they were providing some exempt service, shall now be eligible for the scheme.
These new changes made by the GST Council by way of increasing the threshold limit of the Composition Scheme will make it possible for a large number of taxpayers to avail the benefit of easier compliance under GST tax laws. This is expected to be of great help for businesses in the MSME sector.