32nd GST council meeting underway; Panel may decide on raising exemption threshold for MSMEs
New Delhi, Jan 10 (KNN) In todays’ 32nd Goods and Service Tax (GST) council meeting, the group of state finance ministers might reportedly recommend raising the exemption threshold for GST from the current Rs 20 lakh to Rs 75 lakh. The move is likely to give lakhs of micro and small enterprises an option to remain outside the ambit of GST.
The 32nd GST Council Meeting under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Arun Jaitley began this morning in Vigyan Bhawan in the national capital.
Major issues that will be discussed during the meeting include lowering of GST rates on under-construction flats and houses to 5 per cent and raising the exemption threshold from Rs 20 lakh to Rs 75 lakh for small and medium enterprises.
Other agendas might include composition scheme for small suppliers, levying of calamity cess, and GST rates for the lottery.
With regard to threshold exemption for MSMEs, Prime Minister Narendra Modi in a public meeting in Agra revealed that he had urged the Council to raise the threshold for exemption from the levy's registration, to Rs 75 lakh annual turnover from the current Rs 20 lakh.
During the meeting, Modi said that the centre is taking various steps to help the SME sector, including easing of credit flow.
“We are formulating policies so that they do not face cash flow squeeze and that they get easy credit from banks, while the environmental and other clearances come faster,” he said, adding that businesses flourish when rules are simpler.