The GST Council had been constituted and a bunch of announcements have been made by the Finance Minister. These are
- GST will apply when turnover of the business exceeds Rs 20lakhs (Limit is Rs 10lakhs for the North Eastern States). [Earlier the limit was Rs 10lakhs and Rs 5lakhs for NE states.]
The increase in GST threshold limits will mean a sigh of relief for traders and service providers. Currently, the threshold of VAT is 5 lakhs in most states and 10 lakhs for service tax which will mean more taxpayers will be exempt from GST. However, bad news for manufacturers because excise threshold is 1.5 crores which is reduced under GST to 20 lakhs. Small manufacturers with threshold more than 20 lakhs will have to register under GST.