Changes recommended in Composition Scheme by GST Council

The GST Council in their 23rd meeting of held on November 10, 2017, has recommended the following for composition scheme:

i.                    Uniform rate of tax at 1% under composition scheme for manufacturers and traders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurant.

ii.                  Supply of services by Composition taxpayer up to Rs 5 lakh per annum will be allowed by exempting the same.

iii.                Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rupees 1 crore under the law. Thereafter, eligibility for composition will be increased to Rs. 1.5 Crore per annum. This change recommended by GST Council will be implemented only after the necessary amendment of the CGST Act and SGST Acts.