The Finance Ministry on Monday posted a series of tweets and announced that businesses with annual turnover up to Rs 40 lakhs are now exempted from paying GST.
Additionally, those with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1 per cent tax.
GST has reduced the rate at which people have to pay tax. The revenue neutral rate as per the RNR (Revenue Neutral Rate) Committee was 15.3 per cent.
Compared to this, the weighted GST rate at present, according to the RBI, is only 11.6 per cent, the ministry said.
Initially, this limit was Rs 20 lakh.
“As we remember Arun Jaitley today, let us acknowledge the key role he played in the implementation of GST, which will go down in history as one of the most fundamental landmark reforms in Indian taxation,” the Finance Ministry tweeted.
The Finance Ministry tweeted that GST has reduced the rate at which people have to pay tax and helped increase compliance and doubled taxpayer base to 1.24 crore.
GST has reduced the rate at which people have to pay tax. The revenue neutral rate as per the RNR Committee was 15.3%. Compared to this, the weighted GST rate at present, according to the RBI, is only 11.6%. (5/6)
— Ministry of Finance (@FinMinIndia) August 24, 2020
As of now, the 28 per cent rate is almost solely restricted to sin and luxury items.
Out of a total of about 230 items in the 28 per cent slab, about 200 items have been shifted to lower slabs, the ministry said.
While the housing sector has been placed in the 5 per cent slab, GST on affordable housing has been reduced to 1 per cent.
All processes in GST have been fully automated. Till now 50 crore returns have been filed online and 131 crore e-way bill generated, the Ministry added.