The GST Council relaxed the tax exemption limit to Rs 40 lakh from the earlier cap of Rs 20 lakh during its 32nd meeting on Thursday. What changes will this move bring? How is it going to affect the taxpayers? Here are all the details you need to know about the new GST limits:

• With the threshold amount now being increased to Rs.40 lakh, a vital fact to remember is that this limit is applicable from the financial year 2019-20 onward, not for the current FY 2018-19.

• This limit is exclusively applicable on sale of goods, not services. The limit for service providers continues to be Rs. 20 lakh for most states except for those states where the declared limit is Rs10 lakh.

• This limit is not applicable while selling goods from one state to another, so, there is no change in the case of inter-state sales

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