Keeping in mind the Corona situation, the Modi government made a big announcement about GST. It has been announced that companies with an annual turnover of Rs 40 lakh will be exempted from GST. It has been informed that the loss-making companies will get some relief. And the companies that have an annual turnover of Rs 1.5 crore will have to pay 1% GST per year.
Corona epidemic has caused huge losses to various trade companies in the country. Production in several factories has come to a standstill. Especially The small and medium industries have suffered the most. Many small factories have closed. Multiple agencies have laid off staff. Due to the corona pandemic market value has gone down significantly.
Multiple companies have suffered huge losses due to the Corona situation. Next to it, companies are struggling to pay the proper GST. Considering their situation, the Modi government has announced a big decision to waive GST. Earlier, GST on companies with an annual turnover of Rs 20 lakh was waived. This time it has been increased to 40 lakhs.
The Union Ministry of Commerce has announced that companies with an annual turnover of Rs 4 million will no longer have to pay GST. And the annual turnover of those companies is one and a half crore rupees. They have to pay only 1% GST. Real estate companies have to pay 5% GST.
GST has been reduced because multiple commercial cases are suffered for the corona pandemic. Out of 280 products covered under 28% GST, GST on 200 products has been reduced to 20%. Due to which the government treasury has suffered a huge blow.