Service Providers With Turnover Upto Rs 50 Lakh Can Opt For GST Composition Scheme Till 30 April: CBIC
CBIC has provided service providers with a turnover of up to Rs 50 lakh time till 30 April to opt-in for the Composition scheme under the GST framework, reports The Hindu BusinessLine (BL).
In January, the GST Council had extended the scheme to both service providers and mixed suppliers (those who supply both goods and services).
Those service providers who opt-in for the Composition scheme have to pay a tax rate of only six per cent (three CGST + three SGST) on total sales. But they would not be eligible to avail any input tax. This scheme is open to all types of service providers within the exemption limit.
Central Board of Indirect Taxes and Customs (CBIC) has directed that the option to pay GST at a reduced rate of six per cent would be effective from the beginning of the new financial year (FY20) or from the date of obtaining new registration during the fiscal year.
Huge Relief
Presently registered firms who want to join the scheme have to file Form GST CMP-02 by selecting ‘Any other supplier eligible for composition levy’ on the portal by 30 April 30. Businesses which are seeking new registration may avail the said benefit in Form GST REG-01 at the time of filing application.
It should be noted that the service sector in India accounts for over 55 per cent of the GDP.