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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

Dilip Kumar Jha  |  Mumbai 

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The Goods and Services Tax (GST) council in its 32nd meeting held on Thursday doubled the exemption threshold limit of 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 council has also raised the existing 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 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 sector, said a senior industry official.

First Published: Thu, January 10 2019. 19:35 IST