Top 3 Decisions to be effective from 01st April 2019 | GST council


The implementation of various decisions taken by the GST Council in its 32nd meeting for the MSME sector will be effective from 01.04.2019.   The government has recently released the notifications to make this applicable from 01.04.2019.   Below are the decisions that are taken and will be implemented from 01st April with notification.

1. Increase in Threshold limit for GST Registration: 20 – 40 lakhs

For the supplier of Goods

From April 01, 2019,  There will be two threshold limits for exemption from GST registration and GST payment.   This is applicable to the suppliers of goods within or outside the states.   The two threshold limits are :

Rs 40 lakhs and Rs 20 lakh

However, Individual States will have an option to decide about one of the limits from above.  

For Supplier of Services

The threshold limit for GST registration for service providers will continue to be Rs 20 lakh and in case of Special category States, it will be Rs 10 lakhs.  

Notification No. 10/2019 –Central Tax, dated the 7thof March 2019

2. Supply of services and goods under Composition scheme – GST @ 6 %

A composition scheme will be available for suppliers of services (or mixed suppliers) with a tax rate of 6% (3% CGST + 3% SGST).   This is applicable for those who are having an annual turnover in preceding financial year up to Rs 50 lakhs. 

Therefore, taxpayers will able to opt for composition scheme, even they supply other services rather than restaurant services as earlier.

Notification No. 02/2019 –Central Tax (Rate), dated the 7thof March 2019

3.Increase in Turnover limit for Composition scheme(Goods): 1 crore – 1.5 crore

From 01.04.2019 – The limit of annual turnover in the preceding financial year for availing composition scheme for goods will get an increase to Rs 1.5 crore.   However, Special category States will decide about the composition limit in their respective States.

Notification No. 14/2019 –Central Tax, dated the 7thof March 2019. 

Read more GST notifications..

Date: 10-01-2019: The 32nd GST council Meeting held today on 10th January 2019 in New Delhi. 

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In order to make you understand easily, GST India News has made this 32nd GST council Meeting decisions in simple format.  The meeting is very crucial because of various changes took place in today’s meeting.  The previous meeting was held just 2 weeks back in the month of December 2018.   So, let us see more about today’s meeting and what decisions the government has taken. 

The meeting held under the chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley. 

The council has further given more relief to Micro, Small & Medium Enterprises (MSME) including Small Traders.   Therefore, The major focus of today’s meeting was on the weaker section of the industry.  The council has come with below top 7 major decisions to boost the small businesses.

Top 7 Decisions of 32nd GST Council meeting

 1. A rise in the Turnover limit for Composition scheme

Earlier, the turnover limit to opt for composition scheme was Rs. 1 crore.  However, there was a lot of public demand to increase this limit from day 1.  Therefore finally the GST council increased this limit from 1 crore to 1.5 crores.

However, Special category States will decide, within one week, about the Composition Limit in their respective States.   The states which come under special category are specified in sub-clause (g) of clause (4) of article 279A of the Constitution. 

These special category states are as follows:

  • Arunachal Pradesh
  • Assam
  • Jammu and Kashmir
  • Manipur
  • Meghalaya
  • Mizoram
  • Nagaland
  • Sikkim
  • Tripura
  • Himachal Pradesh
  • Uttarakhand

2. Simple and Easy compliance

  • The compliance process for composite dealers will be made simple.
  • They will need to file one Annual Return. 
  • However, Payment of Taxes will remain Quarterly basis only for such dealers. 
  • Further, they will have to pay taxes with a simple declaration.

3. An increase of Exemption Threshold limit

  • There will be two types of exemption limits for registration and payment for the supplier of goods.
  • This will be Rs. 40 lakhs and Rs. 20 lakhs
  • Council has given a one week time to states to take a decision on the limit.
  • Threshold limit for service provider will remain as it is i.e Rs.20 lakh and Rs. 10 lakhs for special category states respectively.

4. Composition scheme to service providers

Yes, now you will able to opt for composition scheme if you are a service provider.  This will be the following conditions.

  • The GST rate for this scheme will 6% (3% CGST +3% SGST
  • The Annual Turnover in the preceding Financial year must be equal or less than to Rs. 50 lakhs.
  • The scheme will be applicable to service providers as well as Suppliers of Goods and Services.   This is especially for those who are not eligible for the presently available Composition Scheme for Goods.
  • Liable to file one Annual return.
  • Liable to pay tax quarterly basis.

5. Free Invoicing and Accounting software to small Taxpayers

  • GSTN will provide free GST Invoice and accounts maintenance software to small taxpayers.

6. Constitution of Committee for  Real estate and lotteries

  • The government will constitute a committee of seven groups of ministers.
  • A committee will examine the proposal of giving composition scheme to boost the residential segment of Real Estate.
  • The committee will examine the GST Rate structure on lotteries.

7. Revenue collection for natural calamity in Kerala

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  • GST council approves to levy cess @ 1% on the supply of goods and services.
  • This will be only intra-state transactions i.e within the state of Kerala.
  • This will be applicable for not more than 2 years.

The effective date of Decisions

The decisions from above point no. 1 to 4 will be operational from 01st April 2019.   

Similarly, the government will issue notifications in due course of time for the rest of the decisions.  Check our latest GST Notifications page for more details.

Click to Download  32nd gst council meeting press release in pdf format

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This is all about 32nd GST Council Meeting Decisions, updates and Results. Download press release to read in pdf format.   Also, read to know the outcome, notification details and results of today’s meeting.

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