Amendments in Composition Scheme under GST and inclusion of Supplier of Service under the Scheme.
With a first meeting in a new calendar year of 2019 GST council has come up with a relaxing exhale for MSME units and small traders by introducing some essential changes to the policy and procedure under the GST Act. Some important and “must know” features are as follows:
1. Threshold Limit: Council has provided two thresholds limits i.e. INR 20 Lakh and INR 40 Lakh, for registration and payment of GST for the supply of Goods and State Governments has to decide the respective limits. There is no change in case of “Service Provider” as the threshold stands continue at INR 20 Lakh and in special category states INR 10 Lakh.
Existing limit – INR 20 Lakh
New Limit – INR 40 Lakh
*Only for supplier of “Goods”
2. Turnover Limit under Composition Scheme: The annual turnover limit for the preceding financial year in order to avail the composition scheme benefit has been increased from INR 1 Crore to INR 1.5 Crore. However, the special category states are provided a time limit of one week whether to accept the new amendment or not.
Existing limit – INR 1 Crore
New Limit – INR 1.5 Crore
*Annual Turnover of preceding financial year.
3. Composition Scheme for Service Provider: Council has decided to provide a benefit of composition scheme to service providers also, which was not so till now. The threshold limit of turnover in the preceding financial year would be INR 50 Lakh for supplier of services or mixed suppliers with a Tax Rate of 6% (3% CGST + 3% SGST). There will be liability of filing one Annual Return with paying taxes on quarterly basis with a prescribed declaration.
Threshold Limit – INR 50 Lakhs
Applicable to – Supplier of Service or Mixed supplier i.e. provider of goods as well as services
Tax Rate: 3% CGST + 3% SCGS (Total 6%).
4. Simplification of Compliance: Compliance norms has been simplified under composition scheme, as there would be now only Annual Return filing with liability of paying tax quarterly along with a declaration.
Only Annual Return filing
Payment of Tax quarterly
5. Natural Calamity Revenue Mobilization: Council has approved a levy of Cess on Intra-State Supply of Goods and Services within the state of Kerala maximum upto 1% for maximum 2 years
Additional Cess- >= 1%
Maximum for 2 years
Only in Kerela
6. Effective Date: This amendment shall come into force with effect from 01st April, 2019.
Author Bio
I have manufacture unite and now with same gst number can i give services also
I am a trader registered under composition scheme. If I get rent on commercial premise up to RS.4,00,000/- per annum can I continue as a composition dealer.? If yes what will be the tax liability.?
In composition scheme earlier certain amount of service was allowed. In my boutique certain amount of tailoring was permitted. In this way present scheme is disadvantage.
Hi Sir,
I am into facility management, taking care of upkeep of layouts , gardens in it and road cleaning, site cleaning and security arrangements. Can I opt for composition tax slab of 6% if turn over is below 50 lakhs for current financial year. Company ws registered in April 2019.
hello sir,
i was having a doubt one of my friend is into a business of providing services of mandap for marraige.
Will he come under composition scheme???
I HAVE 10 ROOM HOTEL MY TURNOVER IN 2018-19 WAS 36 LAKHS CAN I GO FOR NEW GST COMPOSITION SCHEME 20 LAKH EXEMPT AND BALANCE 30 LAKHS 6 % RATE
composition scheme – Trader — paying 1% GST oN goods –also providing SERVICE getting resident rent — is taxable ? — if yes, at what rate, and commercial rent is taxable — if yes, at what rate?
whether notification for composition scheme for supplier of services issued? Can u get me Circular No.?
2019-2020 GST composition scheme applicable for service providers also. Is service provider occasionally offering inter-state service, eligible for composition scheme?
In GST can i make interstate sale. Please send any notifications if any you have …
SIR,
AT PRESENT I M A REGULAR DEALER IN GST N I M MANUFACTURER.
IF I OPT FOR COMPOSITION SCHEME , WOULD I ABLE TO DO INTERSTATE SUPPLY.
1. Composition Scheme for Service Provider not available for new registration and regular taxpayer trf composition scheme from what time start date ??
Is it applicable for Mutual Fund Advisor?. I am looking for Composition Scheme for Service Provider.
Hello Mr Vyas
As per council recommendations, A composition scheme shall be made available for suppliers of services (or mixed suppliers) with a tax rate of 6% (3% CGST + 3% SGST) having an annual turnover in preceding financial year upto Rs 50 lakhs. In this regard my question is whether the same is applicable to Inter-state supply service provider also?
Hi,
I would like to know if there is any rebate on tax for Sports academy who are giving coaching in Tennis or Badminton or Cricket Players.
Hallo Sir,
I am belong from Assam. In Assam existing threshold limit is 20 Lacks earlier it was 10 lacks. Is it will be 40 lacks w.e.f. 01/04/19 in Assam or 20 lacks
Please reply,
Regards,
N.Debanth
Hello Sir, i am really happy with your post , i have an doubt we are into diesel generator Service also we use to Supply Consumables like Filters, Engine oil Coolant etc.
My Doubt is How our turnover will be considered as a service provider, is it like only service Charges or Ser. Charges + Supply of Materials.
Preceding FY Turnover Around 30 Lacs in that Service Charges alone 15 Lacs there whether we can avoid GST registration as per threshold limit Is 20 Lacs for Service provider.
i am awaiting for your Valuable advice
Thanking you
One nation one tax, now one nation one tax different limit for goods and services