Finance Minister Nirmala Sitaraman announced that the annual turnover of up to Rs 40 lakhs are exempted from GST. The limit was Rs 20 lakhs.
Key Points :
This announcement declares on the occasion of the first death anniversary of former finance Minister Arun Jaitley. Turnover up to Rs. 1.5 crores shall opt for Composition Scheme and shall pay a 1% tax.
1.The composition increased from 75 Laks to 1.5 crores.
2.This scheme has extended to services also.
3.Under GST compliance has been steadily increasing.
4.Also, GST has reduced the rate in which people pay taxes.
5.The tax rates were brought down. Now only 28% tax is being levied on luxury items.
What is RNR?
1.RNR is the Revenue Natural Rate.
- It removes the cascading effect of the tax.
- It removes the problem of tax on tax.
- This is a value-added tax.
A committee under Dr. Arvind Subramanian released a detailed report on the calculation of RNR.
What is the Composition Scheme?
This is a scheme for small and medium enterprises. This can reduce the compliance burden. SME might face difficulties to submit frequent returns.
Reference : Gk Today.