REVISED THRESHOLD LIMIT FROM 50 LAKSH TO 75 LAKHS FOR COMPOSITION LEVY UNDER GST AS DECIDED IN THE GST COUNCIL MEETING HELD ON 11.6.2017
REVISED THRESHOLD
LIMIT FOR COMPOSITION LEVY
[As per discussions in the 16th GST Council Meeting held on 11th June,
2017]
Sub section (1) of section 10 read with sub-section (2) of the same section of the Central Goods
and Services Tax Act, 2017 [CGST Act]
provides that an eligible registered person, whose aggregate turnover in the preceding financial year did not exceed Rs.50 lakh, may
opt to pay, in lieu of the tax payable by him,
an amount calculated at the rate of:
1. 1% of turnover in State or turnover
in Union Territory in case of a manufacturer;
2. 2.5% of turnover in State or turnover in Union Territory in case of persons engaged in making
supplies referred to in
Paragraph
6(b)
of Schedule II to
the CGST Act; and
3. 0.5% of turnover in State or turnover in Union
Territory in case of other
suppliers.
2.
The said sub-section also provides
that the said limit may be increased
upto Rs.1 crore on the recommendations
of the GST Council.
3.
The GST Council, in its meeting held on 11th June, 2017, has recommended increase in
the aforesaid turnover limit for
Composition Levy for
CGST and SGST purposes from Rs.50
lakh to Rs.75 lakh in respect of all eligible registered
persons, referred to in the aforesaid sub-
section. However, whether the same increased turnover limit for Composition levy
will
apply in case of Special Category States or
not will be decided in the next
GST Council meeting.
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