GST threshold limit increase to support growth in textile sector

The GST council has also raised the composition scheme turnover threshold from Rs 1 crore to Rs 1.5 crore

The Goods and Services Tax (GST) council in its 32nd meeting held on Thursday doubled the exemption threshold limit of textile players from the existing Rs 2 million to Rs 4 million effective April 1, 2019.

For the north eastern states, the threshold has been doubled to Rs 2 million from Rs 1 million. 

“This decision will help the small and medium sized businesses and will encourage growth in the textiles sector,” said K V Srinivasan, Chairman, The Cotton Textiles Export Promotion Council (Texprocil).

The GST council has also raised the existing composition scheme turnover threshold from Rs 1 crore to Rs 1.5 crore for the financial year 2019-20. Businesses under the scheme will now pay tax on a quarterly basis but returns will have to be filed annually.

“The expansion of the composition scheme has come as relief to a large number of small tax payers who are not in a position to file returns on time.
 

The increase in threshold is set to boost domestic textile sector, said a senior industry official.