New Delhi, Jan 10 (KNN) The exemption limit for Micro, Small and Medium Enterprises (MSMEs) has been raised to Rs 40 lakhs of annual turnover, said Arun Jaitley, Finance Minister.

This was decided in the 32nd Goods and Services Tax (GST) Council meeting that concluded earlier today.

However, for small states the Council set the threshold limit to Rs.20lakhs only.

A list of decisions have also been made that would impact medium and small-scale industries.

From April 1, composition scheme limit will be increased from Rs.1crore to Rs 1.5 crore.

Those who come under the composition scheme will pay tax quarterly, but the return will be filed only once a year.

In a significant move, the Council has rationalized GST Composition Scheme and increased the threshold to Rs.1.5crore with effect from April 1, 2019.

The council also approved composition scheme for services, under which the limit is now set at Rs.50lakh. About 6% GST will be applicable to such services.