Rs 20 lakh annual turnover threshold for GST exemption
With the ambitious deadline for roll-out of the Goods and Services Tax creeping near, the newly formulated GST Registration Council on Friday agreed on and fixed the annual turnover limit for exemption of the tax at Rs 20 lakh. The limit effectively removes most small businesses from the purview of the tax.
The Council also resolved that all cesses will be subsumed in the GST. However, the draft rules on granting exemptions will be finalised on September 30, while the GST rate and tax slabs would be decided at its three-day meeting beginning October 17.
According to Finance Minister Arun Jaitley, who spoke after the meeting, the Council has decided that state authorities will have jurisdiction over assessees with annual turnover of less than Rs 1.5 crore.
