The Finance Ministry on Monday announced that businesses with up to Rs 40 lakh turnover per annum were exempted from GST, a move that could provide huge relief to traders and businesses. The GST exemption limit was Rs 20 lakh before.
In addition to this, businesses with up to Rs 1.5 crore turnover can pay only 1% tax by opting for the Composition Pay Scheme.
Now, Businesses with an annual turnover of up to Rs 40 lakh are GST exempt. Initially, this limit was Rs 20 lakh. Additionally, those with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1% tax. (1/5) pic.twitter.com/Jy589R1qNV
— Ministry of Finance (@FinMinIndia) August 24, 2020
“Once GST was implemented, the tax rate on a large number of items was brought down. As of now, the 28% rate is almost solely restricted to sin and luxury items. Out of a total of about 230 items in the 28% slab, about 200 items have been shifted to lower slabs,” the Ministry announced in the following tweets. The taxpayer base has also doubled since the implementation of GST, the Ministry said as the assessee base increased from 65 lakh to 1.24 crore. All the GST processes are automated and 50 crore returns have been filed online as of now according to the statement.
The construction sector, particularly the housing sector was also granted significant relief as it was placed at the 5% tax rate. GST on affordable housing was also reduced to 1%. The announcements will provide huge relief to businesses that have been adversely affected by the COVID-19 pandemic.
