Question: GST Exemption limit is raised from Rs 20 lakhs to?
(a) Rs 40 lakhs
(b) Rs 25 lakhs
(c) Rs 26 lakhs
(d) Rs 28 lakhs
- On 10th January 2019, GST Council approved the exemption limit under Goods and Services Tax (GST) regime from Rs 20 lakhs to Rs 40 lakhs.
- Small traders and businesses who pays small tax based on turnover rather than value addition is raised to Rs 1.5 crore from Rs 1 crore.
- However States will have the option to choose between the two exemptions limits of Rs 20 lakh and Rs 40 lakh and will have to intimate their decision within a week. The changes will come into effect from 1st April, 2019.
- GST Council also allowed Kerala to collect a 1 % disaster cess on intra-state sale of goods and services for a period of up to two years in order to mobilize revenues so as to meet the cost of rehabilitating parts of states that were destroyed by floods last year.
- Finance Minister Arun Jaitley informed that the GST Composition Scheme, under which small traders and businesses pay a 1 % tax will be based on turnover and it will be extended to service providers up to a turnover of Rs 50 lakh at a tax rate of 6 %.
- Finance minister also informed that those opting for the composition scheme would have to file just one tax return annually but pay taxes once every quarter.
- The revenue loss on account of hike in exemption limit to Rs 40 lakh is estimated to be around Rs 5,200 crore, assuming 50 % of the taxpayers will go out of GST.