Recommendations of GST Council Meeting – 10.01.2019


Before general assembly elections, the government is regularly trying to amuse ‘aam aadmi’ by continuously amending GST laws. As of now, It’s core focus sector is ‘MSME’, the highest portion by “number of people involved” in business where GST has large impact. GST Council is conducting regular meetings for the same,

GST Council met on 10th January 2019, specifically, to discuss the measures for MSME sector like increase in threshold limit for GST, Composition Scheme for service sector, compliance simplification, etc.

Followings are the key recommendations of council which the government wants to bring in effect from 01.04.2019 :-

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 Rs 1.5 crore.

Special category States would decide, within one week, about the composition limit in their respective States


Compliance simplification under Composition Scheme: The compliance under composition scheme shall be simplified as now they would need to file one annual return but payment of taxes would remain quarterly (along with a simple declaration).


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. Rs 40 lakhs and Rs 20 lakhs.

It is being re-iterated here that such higher exemption threshold limit will not be available for service provider.

States would have an option to decide about one of the limits within a weeks’ time. The threshold for registration for service providers would continue to be Rs 20 lakhs and in case of Special category States Rs 10 lakhs.


Composition scheme for services: 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 Rs 50 lakhs.

The said scheme shall be applicable to both service providers as well as suppliers of goods and services, who are not eligible for the presently available composition scheme for goods.

They would be liable to file one annual return with quarterly payment of taxes (along with a simple declaration).


Other Decisions

Free Accounting and Billing Software shall be provided to small taxpayers by GSTN.


GST Council approved levy of cess on intra State supply of goods and services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.


Changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, notifications and Circulars issued earlier and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.


The last date for passing the examination for GST Practitioners to be extended till 31.12.2019 for those GST Practitioners who have enrolled under rule 83(1)(b) i.e. who were sales tax practitioner or tax return preparer under the existing law for a period of not less than five years


Matters referred for consideration

A seven member Group of Ministers shall be constituted to examine the proposal of giving a composition scheme to boost the residential segment of the real estate sector.

A Group of Ministers shall be constituted to examine the GST rate structure on lotteries.

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