SRTEPC appreciates Composition Scheme Limit and Exemption Threshold
The Goods and Services Tax (GST) Council has recently decided to raise Composition Scheme Limit and Exemption Threshold to benefit small and medium enterprises (SMEs), The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) said. The exemption threshold has been doubled for people living in the hilly states and those in the North East region to Rs. 20 lakhs from the earlier Rs. 10 lakhs.
SRTEPC chairman Narain Aggarwal said, “By expanding the Composition Scheme, the government is helping the small players under the SMEs segment who are not in a position to file returns in time, which was expected by them since long.”
The GST Council in its 32nd meeting has taken encouraging decisions by comforting the tax exemption limit to Rs. 40 lakh of annual turnover from the earlier cap of Rs. 20 lakhs and increasing the composition scheme (without input tax credit and no recovery of taxes on output liability) limit to Rs. 1.5 crores from present Rs. 1 crore, SRTEPC in a press release said.
“These exemptions and relaxations will certainly facilitate ease of doing business and smooth functioning of the SMEs. This will also encourage SRTEPC members in their efforts to increase exports of Indian MMF textiles,” Aggarwal said.
The GST Council also took other industry-friendly decisions. Those providing services or mixed supplies (goods and services) with a turnover up to Rs. 50 lakhs will now be entitled to avail composition scheme.
Secondly, service providers and those who render mixed supplies of goods and services with a turnover of up to Rs. 50 lakhs in the informal sector will be entitled to the composition scheme under the GST regime. The composition rate for services has been put at 6 per cent.
Moreover, composition taxpayers will pay tax quarterly, but file returns annually.
– Apparel and Textile News, Apparel Talk, Indian Apparel