Differences between Composition taxpayer as per section 10 of Central Goods and Services Tax Act, 2017 & Composition as per Notification No. 2/2019 -Central Tax (Rate) dated 07th March 2019.

SI.No Composition scheme for all Composition scheme for supplier of service
1 Applicable as per sec 10 of the CGST act Applicable as per Notification no 02/2019 – CT(R ) dt 7/3/2019
2 Specifically powers from section in CGST Act Notified category as per powers drawn by sec 9(1), 11(1), & 16(1)
3 A registered person, whose aggregate turnover in the preceding financial year did not exceed One Crore fifty lakh rupees / Seventy five lakhs for special category states except Jammu & kashmir, may opt to pay, in lieu of the tax payable by him

Threshold limit – 1.5 cror

a registered person, whose aggregate turnover in the preceding financial year was fifty lakh rupees or below

Threshold limit – 50 Lakhs

4 Specified category of registered persons only i.e. Manufacturers, Traders & restaurant/ catering service providers Introduced for supplier of services
5 Rate of tax payable is different for each category of specified registered persons Rate of tax payable on supplies of goods or services is 6% i.e. CGST 3% & SGST 3%
6 To determine the eligibility – ‘Aggregate turnover’ as per sec 2(6) of CGST act of preceding financial year is considered To determine the eligibility-  “first supplies of goods or services or both” shall, for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act.
7 For the purpose of tax amount computation – Percentage of tax is to be calculated on ‘turnover in state’ as defined u/s 2(112) of CGST act. For the purpose of tax amount computation – Tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act
8 He shall mention the words ―composition taxable person, not eligible to collect tax on supplies‖ at the top of the bill of supply issued by him He shall mention the following words at the top of the bill of supply, namely: – ‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’
9 He shall mention the words ―composition taxable person‖ on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business. No such condition notified yet
10 Return form GSTR 4 – Quarterly Not yet prescribed
11 After crossing 1.5 Cr. T/O limit in current FY, he should convert to normal registration This scheme is for only upto first supply of Rs. 50 lakhs, once he crosses then normal registration

 

Note – One additional condition for supplier of services composition scheme is that its not available to those who have already opted for composition scheme u/s 10

Author Bio

Qualification: CA in Job / Business
Company: Vsmart Academy pvt ltd
Location: Pune, Maharashtra, IN
Member Since: 16 Jun 2018 | Total Posts: 10
CA Vandana Patil currently working as a GST research assistant at Vsmart Academy pvt ltd , Pune . View Full Profile

My Published Posts

More Under Goods and Services Tax

One Comment

  1. Vikas Vishwakarma says:

    Returns have been already prescribed for supplier of services vide Notification No.21/2019-Central Tax dated April 23, 2019. Please update the above article.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

January 2021
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031