New Delhi, Jan 11 (KNN) MSME body, Federation of Indian Micro and Small & Medium Enterprises (FISME) has welcomed GST Council’s decision of keeping small enterprises with threshold limit less than Rs 40 lakh out of the ambit of Goods and Service Tax (GST).

Thanking GST Council for their empathetic view on the demands of MSME sector, President of FISME, Dinesh Chandra Tripathi said “The enhancement of exemption limit from Rs 20 lakh to Rs 40 lakh will bring more relief to smaller traders.”

He said the decision of GST Council has brought cheers to micro and small enterprises both in manufacturing and services sector.

With this move, most manufacturers have to register with GST to avail input credit. Further, B2B buyers also prefer a GST registered dealer, he added.

In addition, he said “Allowing service providers to benefit from composition scheme up to turnover of Rs 50 lakh will be thoroughly welcomed by service providers and consultants.”

In order to give relief to small businesses, the GST Council on Thursday doubled the exemption limit and raised the threshold for availing the composition scheme.

"GST exemption limit has been doubled to Rs 20 lakh for north eastern states and Rs 40 lakh for the rest of the country," announced Arun Jaitley, Union Finance Minister during the 32nd GST Council Meeting that held yesterday.

The Council has also increased the turnover limit for businesses availing composition scheme to Rs 1.5 crore from Rs 1 crore from April 1, 2019.