Synthetic and Rayon Textile Export Promotion Council (SRTEPC) has stated that raising of GST exemption and composition scheme limits at the 32nd GST Council meeting on Thursday will boost small and medium units in the man-made fibre (MMF) sector and help increase exports.
SRTEPC sources said the 32nd GST Council meeting has taken encouraging decision by relaxing tax exemption limit from Rs20 lakh to Rs40 lakh on annual turnover and increasing from Rs1 crore to Rs1.5 crore composition scheme limits.
SRTEPC chairman Narain Aggarwal said, ?The step of raising exemption threshold and increasing the composition scheme limits will help small and medium enterprises, especially the power loom weavers and textile traders. Small traders having annual turnover below Rs40 lakh will not have to take GST registration. The traders and entrepreneurs registered under composition scheme of GST will have to pay tax quarterly, but file returns annually.
This will boost the confidence of the traders and entrepreneurs in the MMF sector.
Federation of Surat Textile Traders Association (FOSTTA) president Manoj Agarwal said, Majority of small traders in the markets are having turnover below Rs40 lakh per annum. These traders have got exemption from GST registration and tax filing. Also, traders under composition scheme will get benefit of filing returns annually.