Modi government’s big gift to taxpayers, GST exemption on annual income up to 40 lakhs

New Delhi:The Narendra Modi government announced several major decisions for taxpayers on Monday. In this series, it has been announced to give exemption from GST to businessmen with annual income up to Rs 40 lakh. Earlier this limit was up to 20 lakh rupees. Apart from this, businessmen whose annual income is up to Rs 1.5 crore can opt for composition scheme. Earlier, only businessmen with annual income up to Rs 75 lakh could opt for composition scheme. After choosing this scheme, they will have to pay tax at the rate of only one percent. In a tweet by the Finance Ministry, the composition rate for manufacturers has been reduced from two percent to one percent. Apart from this, by expanding the scope of composition scheme, the service sector has also been included in it.

A series of tweets by the Finance Ministry said that since the implementation of GST, the tax rate on most things has been reduced. The ministry has said that under the tax slab of 28 per cent, only luxury items and perishable items are left. There were 230 items under this tax slab, but about 200 items were shifted to low tax slabs.

Now, Businesses with an annual turnover of up to Rs 40 lakh are GST exempt. Initially, this limit was Rs 20 lakh. Additionally, those with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1% tax. (1/5)

The ministry has said in another tweet that huge relief has been given to the construction sector and especially to the residential sector. It is now placed under the tax slab of five percent. The GST rate on cheap houses is now one percent.