GST – Started By: – Prem Choudhary – Dated:- 22-2-2019 Last Replied Date:- 25-2-2019 – Dear ExperWe have heard that amended in Composition scheme for availing scheme for both supplier -goods or Services or both supplier.However we have not find condition for availing scheme if supplier has supplier both goods and services. please advice.. – Reply By KASTURI SETHI – The Reply = Notification No. 02/2019-Central Tax New Delhi, the 29th January, 2019. Also see Section 5 of the CGST (Amendment )Act, 2018 (31 of 2018 effective from 1.2.2019 – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Section 10 (1) of CGST Act, 2017 notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, [in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calcula
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y in the preceding financial year or five lakh rupees, whichever is higher.] In view of this provision if a supplier makes supply of both goods and services under composition scheme, he can make supply of service upto 10% of the turnover (of what turnover of goods or turnover of both goods and services-not clear from the wordings employed by the legislature) during previous financial year. As the things stand as of noe the turnover is of both goods and services. – Reply By Prem Choudhary – The Reply = SirIn our case , previous year total turnover is less then 1.5 crores and includes ₹ 10 lacs supply of services.Pls advice we can opt composition scheme w.e.f 01.04.2019 – Reply By KASTURI SETHI – The Reply = In my view, 10% is of turnover of goods. You can opt for Composition Scheme but practically there is a huge loss to the assessee. You will lose ITC and will pay tax from your pocket. It is double loss. Regular GST scheme is more beneficial for any assessee. – Reply By Ganeshan
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ot required to these person. Lot of headache is gone in matching the purchase shown in books vs sales uploaded by the vendor. Going ahead the buyer has to call the vendor and ask him to show the sales in GSTR-1 in B2B with proper GSTIN. The call centre type of work will increase in the business. Also, to claim credit the vendors needs to be withing 180 days. The payment tracking is also important to justify claims. Hence, the composition scheme is lucrative. Otherwise as said by collegue expert composition scheme is not beneficial. – Reply By Prem Choudhary – The Reply = Sir Dealer is going to discontinue supply of Services and only supply of goods in future. We have confusion in condition related to to amendment that the value not exceeding ten per cent. of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher. ;In the above case , in previous year Total Turnover is 1.30 lacs and its include ₹ 10 lacs for supply of Servic
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ch for clarifying amendment of Composition Scheme. One more Clarity is require for followings:- Case- if dealers are supplying of goods, running canteen and providing service of courier in previous year. Query:- 1. What are the rate applicable in case dealer want to opt Composition from 1.4.2019 ? whether Separate rate is applicable for canteen (5%) ? or single rate of entire turnover (1% ). 2 Sec-10(1)''For complying of Condition of up to 10% of total turnover or 5 Lacs'', Canteen supply is also consider as Service or excluding Canteen ? – Reply By KASTURI SETHI – The Reply = For mixed supplies under composition it is 6 % (CGST 3%+SGST 3%) – Reply By SHARAD ANADA – The Reply = Logic behind ₹ 5 Lakh is, suppose you have started business in the year 18-19 and do not have any turnover in previous year. In that case if condition of 10% of T.O. of preceding FY will be Nil. Here condition is Value Exceeding 10% of T.O. in state or UT in the preceding FY or ₹ 5 La
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