by Apparel Resources News-Desk
10-January-2019 | 1 min read
In a move that could boost small businesses big way, the Government on Thursday doubled the annual turnover exemption limit under GST to Rs 40 lakh. Currently, firms with an annual turnover of up to Rs 20 lakh are exempted from registration. The raised exemption threshold will allow around 20 lakh taxpayers to opt out of GST if they chose to.
The annual turnover for availing composition scheme has been increased to Rs 1.5 crore from Rs 1 crore, effective from April 1, 2019. Businesses under the scheme will now pay tax on a quarterly basis but the returns will be filed annually. This has come as a big boost to the small businesses.
The GST council, headed by Union Finance Minister Arun Jaitley, has also approved composition scheme for the services sector.
“The states will have the discretion to opt up or opt down the exemption limit. They will have to inform the Secretariat within a week if they wish changes in their exemption limit.” – Arun Jaitley, Finance Minister, India
As far as textile and apparel industry is concerned, this decision will help thousands of jobworkers in textile and apparel hubs, who are an important part of the industry.
“These decisions will help the small and medium sized businesses and will encourage growth in the textiles sector. The expansion of the Composition Scheme has come as relief to a large number of small tax payers who are not in a position to file returns on time” Dr. K.V.Srinivasan , Chairman, The Cotton Textiles Export Promotion Council ( TEXPROCIL)