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GST Composition Scheme For Service Provider
With first meeting of year 2019 GST council come up with giving compliance relaxation to service supplier. In meeting Council proposed to introduce GST Composition Scheme For Service Provider with GST Rate of 6 %. And filing One annual GST Return. Earlier this benefit of Composition scheme was not available for service suppliers. This decision will make less compliance for MSME sector who having turnover below 50 Lac. In this article we explained GST council proposed changes in GST Law.
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GST Composition Scheme Registration
Service Provider having Turnover below Rs. 50 Lac For in the preceding financial year is eligible for GST registration. However procedure for this registration is not yet given by GSTN. However procedure for registration to come from April 2019 on wards.
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GST Rate On Composition Scheme For Service Provider
GST Rate on Composition scheme for service providers 6 %. It will have break up in CGST & SGST (3% CGST + 3% SGST ). This will be applicable for supplier of services and Mixed supplier of services. GST Council had decided to give benefit of composition scheme to service suppliers.
- GST Rate 6 %
- 3% CGST + 3% SGST
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GST Return Filing For Composition Scheme For Service Provider
Making GST Compliance under composition scheme, GST Council mentioned that under scheme there will be only One GST Annual Return for Composition Scheme For Service Provider. And Quarterly payment with declarations.
- One Annual Return
- Quarterly Payment of GST
- Quarterly Declaration
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Turnover Limit under Composition Scheme Service Provider
Turnover Limit under Composition scheme for Service provider will be 50 Lac. This new turnover limit is defined by GST Council. Service provider who’s Turnover was below 50 Lac can apply for Composition Scheme Service Provider. This turnover is applicable for supplier of services and mixed supplier of services.
Example : 1. M/s Shree Services having turnover Rs. 45 lac For FY 2018-19 can apply for composition scheme.
Example : 2 M/s Varun Services having turnover Rs. 65 Lac for FY 2018-19 not eligible to apply for scheme.
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Effective Date For Composition Scheme For Service Provider
Council has mentioned in there meeting of 2019 that amendment for Composition scheme shall be effective from 01 April 2019.
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Download Press note on decisions taken by the GST Council in the 32nd meeting held on 10th January, 2019.
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