The Goods and Services Tax (GST) Council in its 32nd meeting, doubled the exemption threshold limit of textile players from the existing Rs 2 million to Rs 4 million effective April 1, 2019. For the north eastern states, the threshold has been doubled to Rs 2 million from Rs 1 million. This decision will help the small and medium sized businesses and will encourage growth in the textiles sector.
The GST Council has also raised the existing composition scheme turnover threshold from Rs 1 crore to Rs 1.5 crore for the financial year 2019-20. Businesses under the scheme will now pay tax on a quarterly basis but returns will have to be filed annually. The increase in threshold is set to boost domestic textile sector, said a senior industry official.