Composition Levy and GST Recommendation (17th GST Council Meeting on 18-06-2017)

RECOMMENDATIONS REGARDING THE COMPOSITION LEVY AND GST RATE ON CERTAIN GOODS

[As per discussions in the 17th GST Council Meeting held on 18th June, 2017]

I. The Turnover Limit for the Composition Levy:

1. The GST Council, in its meeting held on 11th June, 2017, had recommended increase in the turnover limit for Composition Levy for CGST and SGST purposes from ₹ 50 lakh to ₹ 75 lakh for all eligible registered persons. However, no clear view was taken as to whether or not this increased turnover limit will apply in case of Special Category States.

2. In its meeting held on 18th June, 2017, the GST Council has recommended that the turnover limit for Composition Levy for CGST and SGST purposes shall be ₹ 50 lakh in respect of the following Special Category States namely:

1. Arunachal Pradesh,

2. Assam,

3. Manipur,

4. Meghalaya,

5. Mizoram,

6. Nagaland,

7. Sikkim,

8. Tripura, and

9. Himachal Pradesh.

3. The Council has also recommended that in case of Uttarakhand, the turnover limit for Composition Levy for CGST and SGST purposes will be ₹ 75 lakh.

4. For the State of Jammu & Kashmir the turnover limit for the Composition levy will be decided in due course.

II. Manufacturers of goods who will not be eligible for Composition Levy:

The GST Council has also recommended that manufacturers of the following goods shall not be eligible for the Composition Levy:

S.No.Classification (Tariff Item/Chapter)Description
12105.00 00Ice cream and other edible ice, whether or not containing cocoa.
22106 90 20Pan masala
324Tobacco and manufactured tobacco substitutes

III. GST RATE ON CERTAIN GOODS:

1. The GST Council also recommended that the GST rate on dried singhada and makhana will be 5%.

Categories GST

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