Opt for GST Composition Scheme by April 30,2019

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Compliance
Opt for GST Composition Scheme by Service Providers
Applicable ToSupplier of Service or Mixed supplier i.e. provider of goods as well as services
Last Date30-April-2019
FormForm GST CMP-02
GST  Rate6%

Composition scheme was till now available only to manufacturers and traders. But effective  April 1, 2019 , this scheme is available to the following category of service providers :

  • Supplier of services
  • Supplier of services as well as goods
  • Total turnover during preceding year i.e. 2018-19 should not exceed Rs. 50 Lakhs
  • Suppliers not engaged in providing Inter-state supplies
  • Suppliers not providing services through e-commerce operator

Tax Rate and Payment

  • The tax rate would be 6% which is 3% CGST and 3% SGST
  • The tax is to be deposited with Govt on quarterly basis
  • Tax to be paid on all outward supplies including exempt supplies

Compliances

  • Filing of GSTR 4 on Quarterly Basis
  • Filing only one Annual return
  • The registered person shall not collect any tax from recipient on
  • The registered person shall not be entitled to any credit of input tax.

New Registrations

  • Eligible suppliers registering on or after April 01, 2019 can also opt for this composition scheme by filling up for GST REG-01

Notification No  02/2019 Dated 07 March 2019

Blog written for Proactly by CA Jigar Shah| Partner : S K Rathi & Co. Mumbai