Composition Scheme after Amendment(Supplying Goods as well as Service
Query (Issue) Started By: – Prem Choudhary Dated:- 22-2-2019 Last Reply Date:- 25-2-2019 Goods and Services Tax – GST
Got 12 Replies
GST
Dear Exper
We 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
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than those referred to in clause (b) of paragraph 6 of Schedule II), of 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 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:
Sir
In 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 asse
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preserved properly. The composition scheme eliminates all the requirement. It reduces the cost of compliance. Further, GSTR-2A reconciliation is also not 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
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unting to ₹ 5 Lacs in condition is maximum limit of Service value in previous year for opting Composition Scheme.
Reply By Prem Choudhary:
The Reply:
Thank you so much 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 previo
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