As per notifications released by the Central Goods and Services Tax (CGST) authorities on March 7th, 2019, a concessional rate of GST has been prescribed for suppliers of exclusive goods, composition dealers, and normal taxpayers. Read on to know about the new concessional GST rates for the same.
So, if you are thinking what is concessional rate of GST or concessional rate meaning, so read the following topics, which have been covered in this article and help you understand meaning of concessional rate:
According to notification number 10/2019 released by CGST on 7th March 2019, a dealer is exempted from GST registration if s/he is an exclusive supplier of goods who has an aggregate turnover of Rs. 40 lakhs. This exemption has been made effective from April 1st, 2019 in regard of the provision provided in CGST Act Section 23(2).
However, the aforementioned concessional rate of tax under GST does not apply to the following individuals:
The aggregate turnover threshold limits to obtain GST registration for different states has been shown below for suppliers under different categories:
According to notification number 14/2019 released by CGST on 7th March 2019, the aggregate turnover threshold limit has been increased to Rs. 1.5 crores for dealers who have opted for the composition scheme under the CGST Act Section 10. The limit for aggregate turnover will be Rs. 75 lakhs for eligible registered taxpayers in Meghalaya, Sikkim, Manipur, Tripura, Arunachal Pradesh, Uttarakhand, and Mizoram.
However, manufacturers of ice cream, ice, pan masala, tobacco, and manufactured substitutes of tobacco will not be eligible to opt for the composition scheme.
These changes have been made effective from April 1st, 2019.
A registered service provider will be eligible to opt for the composition scheme if s/he has an annual turnover is less than Rs. 50 lakhs. Such a service provider will then have to pay GST at 6% (3% CGST and 3% SGST).