Implementation of various decisions taken by the GST Council for the MSME Sector; Issue of Notifications there of

The GST Council in its 32^nd Meeting held on 10^th January, 2019, inter-alia, had taken the following decisions to be effective from 1^st April, 2019 (01.04.2019):

• Higher Exemption Threshold Limit for Supplier of Goods: There would be two Threshold Limits for exemption from registration and payment of GST for the Suppliers of Goods i.e. ₹ 40 lakhs and ₹ 20 lakhs. States would have an option to decide about one of the limits. The Threshold for Registration for Service Providers would continue to be ₹ 20 lakhs and in case of Special Category States ₹ 10 lakhs.
• Composition Scheme for Services and Mixed Suppliers: A Composition Scheme shall be made available for Suppliers of Services (or Mixed Suppliers) with a tax rate of 6% (3% CGST + 3% SGST) having an Annual Turnover in preceding Financial Year upto ₹ 50 lakhs.
• Increase in Turnover Limit for the Existing Composition Scheme: The Limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to ₹ 1.5 crore. Special Category States would decide about the Composition Limit in their respective States.

            The following Notifications have been issued to implement the above decisions:

• Notification No. 10/2019 – Central Tax, dated the 7^th of March, 2019 for higher exemption Threshold Limit for Supplier of Goods;
• Notification No. 02/2019 – Central Tax (Rate), dated the 7^th of March, 2019 for Composition Scheme for Services and Mixed Suppliers, which would be optional to the taxpayers;
• Notification No. 14/2019 – Central Tax, dated the 7^th of March, 2019 for Increase in Turnover Limit in case of existing Composition Scheme.

            These Notifications shall come into effect from the 1^st of April, 2019.