The GST Council relaxed the tax exemption limit to Rs 40 lakh from the earlier cap of Rs 20 lakh during its 32nd meeting held today. Hon’ble Finance Minister Shri Arun Jaitley said that the threshold limit has been doubled to Rs 40 lakh from Rs 20 lakh. The exemption limit for small states has also been increased to Rs 20 lakh from Rs 10 lakh.
The exemption limit is the threshold of annual turnover above which companies have to mandatorily register under the GST regime. Regarding exemption limit, a dual threshold system is maintained, a lower cap for North-eastern and hilly states flagged as special category states and a higher one for the rest of India. Shri O.P. Prahladka, Chairman – EPCH said that it is a step in the right direction as it would help the MSME sector to devote time and energy towards enhancing production and will help in ease of doing business by reducing paper work for them. It will also encourage individuals who have left the sector to pursue other opportunities back into its folds and thereby creating job opportunities and increasing income levels.
The exports of handicrafts during the year 2017-2018 was to the tune of Rs. 23029.36 crores. However, Exports of handicrafts for the period April – December, 2018-19 is Rs. 19158.58 crores registering a growth of 11.47%.