Page 10 - Banking Finance April 2019

GST UPDATE

GST

NEWS
NEWS
NEWS
NEWS
NEWS

GST mop-up slows to Rs. 97,247 cr in Feb GST rate cut a boost to
GST collections in February dropped to Rs 97,247 crore in February from Rs 1.02
lakh crore in the previous month, the Finance Ministry affordable homes
said. The number of sales return or GSTR-3B filed for GST Council has announced reduction
the month of January up to February 28, 2019 was of charges on under-construction
73.48 lakh. "The total gross GST revenue collected in housing to 5% from an effective 12%,
February 2019 is Rs 97,247 crore of which Central providing relief to homebuyers ahead
of national polls due by May. The GST
GST is Rs 17,626 crore, State GST (SGST) is Rs 24,192 crore, Integrated GST
(IGST) is Rs 46,953 crore and Cess is Rs 8,476 crore," the ministry said in a state- rate on affordable housing projects
too has been lowered from an effec-
ment. Goods and Services Tax (GST) collections in the current fiscal till February
totalled Rs 10.70 lakh crore. The government has lowered the GST collection tive 8% to 1%.
target for current fiscal to Rs 11.47 lakh crore in the Revised Estimates, from The new rates will be effective from
Rs 13.71 lakh crore budgeted initially. 1 April. Under-construction properties
priced up to Rs. 45 lakh would qualify
GST exemption limit for SMEs to be effective from April 1 as affordable housing projects for the
The government has notified April 1 as the date for the implementation of dou- purpose of GST relief in metro cities
as well as non-metro cities, finance
bling of GST exemption limit to Rs 40 lakh, which will
benefit small and medium enterprises. Besides, the ef- minister Arun Jaitley told.
fective date for availing higher turnover cap of Rs 1.5 "We wanted to give a boost to the
crore for availing composition scheme by traders has also real estate sector, as well as relief to
been fixed as April 1. the middle class, neo-middle class
Also, service providers and suppliers of both goods and and the aspirational middle class,"
services with a turnover of up to Rs 50 lakh would be eligible to opt for the GST said Jaitley. Although the cap on price
composition scheme and pay a tax of 6 per cent from the beginning of next of the property is Rs. 45 lakh for both
fiscal. "There would be two threshold limits for exemption from registration and metro and non-metro projects to get
payment of GST for the Suppliers of Goods i.e. Rs 40 lakhs and Rs 20 lakhs. States the 1% tax rate, they have to meet
would have an option to decide about one of the limits. different carpet area requirements.
Only those with a carpet area of 60
"The Threshold for Registration for service providers would continue to be Rs
20 lakhs and in case of Special Category States Rs 10 lakhs," it said. Also the sq. m in metros and 90 sq. m in non-
GST Composition Scheme, under which small traders and businesses pay a 1 per metros falling under the Rs. 45 lakh
cent tax based on turnover, can be availed by businesses with a turnover of Rs cap would be eligible for the 1%
1.5 crore, against the earlier Rs 1 crore, with effect from April 1. rate, explained Jaitley.

10 | 2019 | APRIL | BANKING FINANCE