The tax division has given service suppliers with a turnover of as much as Rs 50 lakh time until April 30 to go for the composition scheme and pay 6 per cent GST.
The choice to pay Items and Providers Tax (GST) on the diminished charge of 6 per cent could be efficient from the start of the monetary 12 months or from the date of acquiring new registration in the course of the monetary 12 months.
Service suppliers choosing the composition scheme can cost a decrease tax charge of 6 per cent from prospects, as towards the upper charges of 12 and 18 per cent for many providers beneath GST.
In a round, the Central Board of Oblique Taxes and Customs (CBIC) stated suppliers who need to go for composition scheme must file Type GST CMP-02 by choosing ‘Some other provider eligible for composition levy’ newest by April 30, 2019.
Companies which apply for brand new registration could avail the stated profit in Type GST REG-01 on the time of submitting utility for registration.
AMRG & Associates Associate Rajat Mohan stated “quite a few service suppliers tried to file this intimation opting composition scheme just lately however had been denied as a result of a authorized embargo. Now with this clarification, GSTN would begin accepting the intimations quickly”.
The GST Council, headed by Finance Minister Arun Jaitley and comprising state ministers, in its assembly on January 10 had permitted service suppliers and people dealing in each items and providers with a turnover of as much as Rs 50 lakh to go for composition scheme with impact from April 1.
The GST composition scheme was to date obtainable to merchants and producers of products with an annual turnover of as much as Rs 1 crore.
This threshold too has elevated to Rs 1.5 crore from April 1.
Underneath the scheme, merchants and producers are required to pay only one per cent GST on items which in any other case entice the next levy of both 5, 12 or 18 per cent. Such sellers are additionally not permitted to cost GST from the purchaser.
Of the 1.20 crore companies registered beneath GST, about 20 lakh have to date opted for the composition scheme.