New Delhi, June 12 (KNN) In a move that would benefit many small traders, unit holders and shopkeepers, the GST Council on Sunday increased the turnover limit for Composition Levy for CGST and SGST purposes from Rs.50 lakh to Rs.75 lakh.
However, whether the same increased turnover limit for Composition levy will apply in case of Special Category States or not will be decided in the next GST Council meeting.
The GST Council held its 16th meeting on June 11, 2017 to revise the rates for 66 items, mostly produced by the small sector, and hold other discussions over recommendations made by different sectors.
After the meeting, CBEC in a notification said, “Sub section (1) of section 10 read with sub-section (2) of the same section of the Central Goods and Services Tax Act, 2017 [CGST Act] provides that an eligible registered person, whose aggregate turnover in the preceding financial year did not exceed Rs.50 lakh, may opt to pay, in lieu of the tax payable by him, an amount calculated at the rate of: 1. 1% of turnover in State or turnover in Union Territory in case of a manufacturer; 2. 2.5% of turnover in State or turnover in Union Territory in case of persons engaged in making supplies referred to in Paragraph 6(b) of Schedule II to the CGST Act; and 3. 0.5% of turnover in State or turnover in Union Territory in case of other suppliers.”
Further, “The said sub-section also provides that the said limit may be increased upto Rs.1 crore on the recommendations of the GST Council.”
The GST Council, in its meeting held on June 11, 2017, has recommended increase in the turnover limit for Composition Levy for CGST and SGST purposes from Rs.50 lakh to Rs.75 lakh in respect of all eligible registered persons, referred to in the subsection.
According to industry experts, the move will be beneficial for the small traders and units holders and make them eligible for Composition levy. (KNN Bureau)