The tax department has provided service Industries with a turnover of as much as Rs 50 lakh times until April 30 to opt for the composition scheme and pay 6% Goods and services tax (GST).
Valid Date:
The choice to pay Goods and services tax on a reduced charge of 6% could be powered from the start of the financial year or from the date of acquiring new registration at some stage in the financial year.
Advantages of Composition Scheme:
- Service Industries opting for the composition scheme can rate, a lower tax charge of 6 % from clients, as upon the higher fees of 12% and 18 % for maximum services below Goods and services tax.
- Under the scheme, investors and producers are asked to pay 1 % Goods and services tax on goods which, unless entice a higher levy of either five, 12 or 18 %. Such dealers also are no longer acceptable to price, GST from the patron.
- Of the 1.20 crore agencies enrolled beneath Goods and services tax, about 20 lakhs have so far chosen for the composition scheme.
Procedure:
- In a circular, the Central Board of Indirect Taxes and Customs (CBIC) stated providers who require to opt for composition scheme might should document Form GST CMP-02 by using ruling on ‘Any other provider eligible for composition levy’ trendy by April 30, 2019.
- Businesses which accompany for brand spanking new registration may additionally avail the pronounced benefit in Form GST REG-01 at the time of submitting an application for registration.
- The GST Council, headed by using Finance Minister Arun Jaitley and comprising state ministers, in its association on January 10 had approved service carriers and those dealing in both goods and services with a turnover of up to Rs 50 lakh to determine composition scheme with impact from April 1. The GST composition scheme was to this duration accessible to traders and producers of products with a yearly turnover of up to Rs 1 crore. This inception too has multiplied to Rs 1.5 crores from April 1.