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A committee has been set up to consider real estate GST rates, a consensus is yet to be achieved, says FM ArunJaitley.
The exemption limit for MSMEs has been raised to Rs 40 lakh of annual turnover, says FM ArunJaitley.
The GST council also doubles the annual turnover threshold for GST registration, says FM ArunJaitley.
The council has allowed the state of Kerala to impose a cess of up to1 percent on intrastate sales for two years, says FM ArunJaitley.
The GST composition limit for services is now set at Rs 50 lakh, says FM ArunJaitley.
JUST IN | The composition scheme limit has been hiked from Rs 1.50 crore, says FM Arun Jaitley.
After the devastating floods that took place in 2018, Kerala has been permitted to levy a 1 percentcess for two years, according to a CNBC TV 18 report.
The threshold for the GST registration has been raised for businesses with an annual turnover of Rs 50 lakh, Bloomberg Quint quoted Andhra Pradesh’s Finance Minister Y Krishnudu on the sidelines of the meeting. Currently, businesses with a turnover of gambit of Rs 20 lakh or above fall under GST.
GST threshold to be raised for turnover of Rs 50 lakh and above
The threshold for the GST registration has been raised for businesses with an annual turnover of Rs 50 lakh, BloombergQuint quoted Andhra Pradesh’s Finance Minister Y Krishnudu on the sidelines of the meeting. Currently, businesses with a turnover of gambit of Rs 20 lakh or above fall under GST.
The GST Council is currently discussing GST rate on under construction properties, reports BloombergQuint quoting Andhra Pradesh Finance Minister YR Krishnudu. He adds that the GST registration to 50 lakh.
The GST Council meeting is still underway. It may go beyond 2-230 pm as the GST Council is yet to discussseveral items on the agenda. Stay tuned for live updates of the32ndGST Council meet.
Currently, businesses below annual turnover of Rs 20 lakh are exempted from paying GST. The proposal is to increase to increase this threshold for MSMEs. The Council may also bring small service suppliers under the composition scheme — an alternate method of taxation that allows small businesses with annual turnover up to Rs 1 crore to pay tax at a concessional rate as well as reduce the compliance cost.
It's more than two hours since the meeting began and reports from the ground indicate that it may go beyond 2-230 pm as the GST Council is yet to discussseveral items on the agenda.
There are heightened expectations that the Council could decide another round of rate cuts including on products like cement with the industry arguing that the product is a critical construction material and needs to be taxed at a lower 18 percent from the current 28 percent.
Finance Minister Arun Jaitleywill announce tweaks in the GST regime after the meeting concludes.
Explainer | Here's how much you will pay if GST on under-construction houses is cut to 5%
GST and under-construction properties
Currently, GST is levied at an effective rate of 12 percent (standard rate of 18 percent less a deduction of six percent as land value) on premium housing and effective rate of eight percent (concessional rate of 12 percent less a deduction of four percent as land value) on affordable housing on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale. However, GST is not levied on buyers of real estate properties for which completion certificate has been issued at the time of sale.
The GST Council now plans to reduce this rate, with many anticipating it to be reduced to five percent. A decision on this front is expected on today.
Read the full report here.
Earlier FM Jaitley had said that the 32nd meeting would consider lowering tax rates on residential properties and raising the threshold limit for MSMEs. Prime Minister Narendra Modi, during a public meeting in Agra on January 9, also said that he had urged the GST Council to raise the threshold limit for exemption from levy's registration to Rs 75 lakh. He also said that houses meant for the middle class should be clubbed in the 5 percent GST slab.
Highlights of the previous GST Council meet:
In the previousmeet, theGST Council slashed rates on 17 goods and six services, such as televisions, movie tickets, video games, among others, restricting only 27 items in the highest tax slab of 28 percent.
Apart from reducing rates, the Council also rationalized and made clarifications related to certain goods, a move that is expected to boost consumption. Essentially, the 28 percent slab will mainly consist of demerit goods such as aerated drinks, tobacco products, and automobile and auto parts, generally considered as luxury goods.
Read the full article here:
Other agendas for today's GST Council meeting include composition scheme for small suppliers, levying of calamity cess, and GST rates for the lottery.
The GST Council meeting has started. Stay tuned for LIVE updates and knowthe major changes made in the GST.
Major issues that will be discussed during the meeting include lowering of GST rates on under-construction flats and houses to 5 percent and raising the exemption threshold from Rs 20 lakh to Rs 75 lakh for small and medium enterprises.
Good morning readers, this blog will keep you posted on the developments in the 32nd GST Council Meet, comprisingFinance Minister Arun Jaitley and his state counterparts.
