GST Amendment: Threshold Adjustment for Composition Scheme
Rule Modification:
G.S.R (E) exercises powers under sub-rule (4) of rule 48 of the CGST Rules, 2017.
Notification Amendment:
The amendment revises the March 21, 2020, notification (No. 13/2020 – Central Tax) related to the Composition Scheme.
Financial Threshold Adjustment:
Effective April 1, 2022, the financial threshold for the Composition Scheme is adjusted from "fifty crore rupees" to "twenty crore rupees."
Government Initiative:
The amendment aligns with the Council's recommendations for a nuanced approach to benefit businesses with a lower turnover.
Official Declaration:
Rajeev Ranjan, Under Secretary to the Government of India, issues the official statement.
Earlier Amendments:
The principal notification, issued on March 21, 2020, underwent the last amendment on June 1, 2021.
Simplified Compliance:
This adjustment aims to facilitate easier entry into the Composition Scheme for businesses with a turnover of up to twenty crore rupees.
Note: The government's decision is geared towards fostering a business-friendly environment and encouraging more enterprises to opt for the Composition Scheme.