“ONE NATION ONE TAX” : Not a phrase anymore!


“ONE NATION ONE TAX” : Not a phrase anymore!

Many drastic decisions were taken in 32 nd council meeting. If we intensely analyse the decision taken

by the council then following highlights may pop up:

  1. a) Increasing Threshold Limit for composition dealer:

This is the very good step taken by Government. Government increased threshold of Composition scheme from 1.00 cr to 1.50 Cr. We should welcome for such move.

  1. b) Increased threshold for supply of goods:

.  In the meeting, Government will just increased the limit of registration only for Supply of goods or as the respective states decides. Whereas threshold exemption for service provider continues at 20.00 Lacs only. This step taken by the Government will differentiate the Goods and Services under GST. And this will abolish the main motive of implementation of “Goods & Services Act”.

. Also giving states a chance to choose threshold exemption limit for supplier of goods between 20.00 Lacs or 40.00 Lacs, the uniformity between all states as far as threshold exemption is concerned is going to be abolished.


  1. c) Composition scheme for service provider:

Even though Government is not increased the threshold limit for registration but government opens new option for them by introducing composition scheme.

. Service providers can opt for composition scheme with tax rate 6% if P.Y turnover is below Rs. 50.00 lacs. Such option introduce the new rate which is not in the previous rate list of GST. 

. But can every service provider is eligible for this scheme? The answer is no. If service provider supplies its services to another states means interstate supply of services then he cannot opt for such scheme.

.  So from the above, it seems that there is no benefit given by the government to services provider which is not come under above category & they have to comply to the act like earlier.

  1. d) Introduction of CESS:

.  The Council by allowing flood hit Kerala state to collect the cess for the period of two years, it is consequentially giving chances to other states, to take due advantage of such crisis and collect the cess, which may increase the cost of living of the person inhabiting in that state and also make GST act complex thereby leading to increase in variances of GST rates.

Hope the phrase “one nation one tax” will be implemented practically instead of becoming phrase on the paper.