The government of India has exempt some goods and services from GST. Exempt from tax means that the supplies which attract NIL rate of tax or which may be totally exempt from tax (also includes non-taxable supply). Business owners are not allowed to claim an input tax credit for the sale of exempted goods and services.
GST Exemption limit changes:
- For MSM enterprises, GST council has doubled the tax exemption limit from Rs. 20 lakhs to Rs. 40 lakhs in annual revenue (applicable till 31st March 2019).
- For business availing the GST composition scheme, which allows them to pay goods and services tax at a flat rate, the turnover limit has been changed to Rs. 1.5 crore from Rs. 1 crore (applicable till 31st March 2019).
- For the north-eastern and hilly states, the GST exemption limit has been doubled to Rs. 20 lakhs from Rs. 10 lakhs (applicable till 31st March 2019).
- GST on pulleys, transmission shafts & cranks, gearboxes, used tyres, power banks (lithium-ion batteries), digital cameras, video camera recorders, and video game consoles has been lowered to 18 % from 28%.
- GST for monitors and TV screens up to 32 inches has been changed to 18 % which earlier was 28 %.
Goods and services exempt from tax in 2019:
Goods exempt from tax:
Food, raw materials, tools or instruments, books, maps, newspapers, journals, non-judicial stamps, postal items, live animals {except horses}, bangles, vegetables (uncooked, frozen), chalk, organic manure etc.
Services exempt from tax:
Agricultural, transportation, services provided by the government and diplomatic missionaries, judicial, educational, and medical services provided by the organizers. Services provided by banks to basic savings bank deposit account holders under the Jan Dhan Yojana is also exempt.
If you require a small business loan, contact Gromor. Gromor gives unsecured business loans in 3 days or less!
