Composition Scheme Threshold Limit Increased to Rs. 1 Crore notified by CBEC

CBEC Notifies Increased Threshold Limit for Composition Scheme (from Rs. 75 Lac to Rs. 1 Crore)

GST Council in its 22nd Meeting dt. 6 Oct. 2017 has recommended to increase the threshold limit of annual aggregate turnover for composition scheme from Rs. 75 lacs to Rs. 1 Crore to facilitate small taxpayers, traders, etc. (threshold of turnover for special category States, except Jammu & Kashmir and Uttarakhand, shall be increased to Rs. 75 lacs from Rs. 50 lacs).

The facility of availing composition under the increased threshold shall be available to both migrated and new taxpayers up to 31 March 2018. The option once exercised shall become operational from the first day of the month immediately succeeding the month in which the option to avail the composition scheme is exercised. New entrants to this scheme shall have to file the return in FORM GSTR-4 only for that portion of the quarter from when the scheme becomes operational and shall file returns as a normal taxpayer for the preceding tax period. The increase in the turnover threshold will make it possible for greater number of taxpayers to avail the benefit of easier compliance under the composition scheme and is expected to greatly benefit the MSME sector.

Persons who are otherwise eligible for composition scheme but are providing any exempt service (such as extending deposits to banks for which interest is being received) were being considered ineligible for the said scheme. It has been decided that such persons who are otherwise eligible for availing the composition scheme and are providing any exempt service, shall be eligible for the composition scheme.

Further, a Group of Ministers (GoM) shall be constituted to examine measures to make the composition scheme more attractive.

Accordingly, the CBEC has notified the increased threshold limit (from Rs. 75 lacs to Rs. 1 Crore) of aggregate annual turnover for composition scheme to facilitate small taxpayers, traders, etc. (threshold of turnover for special category States, except Jammu & Kashmir and Uttarakhand, stands increased to Rs. 75 lacs from Rs. 50 lacs), as under:

Composition Threshold Limit Increased to 1 Crore: CBEC Notification 46/2017 Central Tax 13 Oct.

G.S.R. 1287(E).—In exercise of the powers conferred by sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.8/2017- Central Tax, dated the 27th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 647 (E), dated the 27th June, 2017, namely:-

In the said notification,-

(i) for the words “seventy-five lakh rupees”, the words, “one crore rupees” shall be substituted;

(ii) for the words “fifty lakh rupees”, the words, “seventy-five lakh rupees” shall be substituted;

Composition Threshold Limit Increased to 1 Crore: CBEC Notification 16/2017 UT Tax 13 Oct.

G.S.R. 1292(E).—In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) read with section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 2/2017-Union Territory Tax, dated the 27th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 648(E), dated the 27th June, 2017, namely:-

In the said notification, for the words “seventy-five lakh rupees”, the words, “one crore rupees” shall be substituted.

Related Posts:

CGST (Removal of Difficulties) Order, 2017 notified by CBEC

Union Territory GST (Removal of Difficulties) Order, 2017 notified by CBEC

Highlights of Recommendations of 22nd GST Council Meeting at New Delhi

CBEC Notification No. 8/2017 Central Tax dt. 27 June 2017

CBEC Notification No. 2/2017 UT Tax dt. 27 June 2017

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