Service Providers may now choose composition scheme till July 31

The tax office has stretched out by a quarter of a year till July 31 the due date for service providers with turnover of up to Rs 50 lakh to settle on the composition plan and pay six percent goods and services tax (GST). The GST Council, led by Finance Minister and involving state partners, has allowed such service providers to opt for composition scheme and pay taxes at decreased rate of six percent starting April 1, 2019.

This is against the higher rates of 12 and 18 percent required for most services under GST.

In a round, the Central Board of Indirect Taxes and Customs (CBIC) said providers who need to opt on composition scheme would need to file Form GST CMP-02 by choosing ‘some other provider qualified for composition demand’ most recent by July 31, 2019.

The CBIC had earlier checked April 30, 2019, as the due date for service providers to go for the scheme.

The GST composition scheme was so far accessible to traders and manufacturers of goods with a yearly turnover of up to Rs 1 crore. This threshold also has been expanded to Rs 1.5 crore from April 1.

Under the scheme, traders and makers are required to pay only one percent GST on goods which generally draw in a higher levy of either 5, 12 or 18 percent. Such sellers are likewise not allowed to charge GST from the clients.

Of the 1.22 crore business enlisted under GST, about 17.5 lakh have so far selected the composition scheme.

For more info and queries, please contact Certicom Consulting.

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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.