india

GST Update

January 15, 2019

Last week on January 10, 2019, The Indian Government’s core GST 1 Council held its 32nd meeting to discuss and debate key policy aspects with regard to GST in India. The following major decisions taken are highlighted in this update, which will have impact on foreign organizations setting up or expanding their business in India:

  • The income threshold for exemption from GST in India has been doubled from INR 2Mn
    (USD 28k) to INR 4 Mn (USD 56k) for the supplier of goods. However, the existing limit of
    INR 2 Mn shall continue for the supplier of services. These limits are halved for taxpayers
    belonging to notified small states.
  • The income threshold of INR 10 Mn (USD 141k) under a composition scheme (base tax
    rates without credits) has been increased to INR 15 Mn (USD 212k). Furthermore, the
    composition scheme shall also be available for the services sector having an annual
    turnover up to INR 5 Mn (USD 71k) during the preceding financial year – the GST rate
    for such taxpayers fixed at 6% (3% at central and state levels each).
  • Taxpayers registered under composition schemes have more simplified compliance
    mechanisms now – with only one Annual Return required along with scheduled quarterly
    payments.
  • The Council has also approved an additional levy of 1% cess on the intra-state supply of
    goods within the state of Kerala to account for revenue mobilization for natural disasters.
  • This cess shall apply for a period of two years.

The decisions taken shall be effective from April 1, 2019.

If your organization has questions about what this GST update means for you, please contact us at connect@sannams4.com to set up a time to discuss with one of our financial consultants.

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