Service providers with turnover of up to Rs 50 lakh may now opt for GST composition scheme till 31 July

The tax department has extended by three months till 31 July the deadline for service providers with a turnover of up to Rs 50 lakh to opt for the composition scheme and pay six percent goods and services tax (GST)

Press Trust of India July 03, 2019 14:58:26 IST
Service providers with turnover of up to Rs 50 lakh may now opt for GST composition scheme till 31 July
  • The GST Council has permitted service providers with a turnover of up to Rs 50 lakh to opt for composition scheme and pay taxes at a reduced rate of six percent beginning 1 April, 2019

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

  • The CBIC had earlier marked 30 April, 2019, as the deadline for service providers to opt for the scheme

New Delhi: The tax department has extended by three months till 31 July the deadline for service providers with a turnover of up to Rs 50 lakh to opt for the composition scheme and pay six percent goods and services tax (GST).

The GST Council, chaired by Finance Minister and comprising state counterparts, has permitted such service providers to opt for composition scheme and pay taxes at a reduced rate of six percent beginning 1 April, 2019.

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

Service providers with turnover of up to Rs 50 lakh may now opt for GST composition scheme till 31 July

Representational image. News18.

In a circular, the Central Board of Indirect Taxes and Customs (CBIC) said suppliers who want to opt for composition scheme would have to file Form GST CMP-02 by selecting 'any other supplier eligible for composition levy' latest by 31 July, 2019.

The CBIC had earlier marked 30 April, 2019, as the deadline for service providers to opt for the scheme.

The GST composition scheme was so far available to traders and manufacturers of goods with an annual turnover of up to Rs 1 crore. This threshold too has been increased to Rs 1.5 crore from 1 April.

Under the scheme, traders and manufacturers are required to pay only one percent GST on goods which otherwise attract a higher levy of either 5, 12 or 18 percent. Such dealers are also not permitted to charge GST from the customers.

Of the 1.22 crore businesses registered under GST, about 17.5 lakh have so far opted for the composition scheme.

Updated Date:

also read

Narendra Modi says GST Council's decisions on small businesses will greatly help MSMEs
Business

Narendra Modi says GST Council's decisions on small businesses will greatly help MSMEs

Prime Minister Narendra Modi on Thursday said the GST Council's decisions relating to small businesses will greatly help MSMEs, traders and the service sector and the government is committed to a simple and people-friendly GST

GST Council may look to rationalise 28% slab; taxes on cement may be cut in its meeting next week
Business

GST Council may look to rationalise 28% slab; taxes on cement may be cut in its meeting next week

The GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, has pruned the 28 percent slab by cutting tax rates on 191 goods over the last one-and-a-half year, leaving only 35 items in the highest slab.

12%, 18% GST rates can be merged to new slab, says Bihar deputy chief minister Sushil Modi
Business

12%, 18% GST rates can be merged to new slab, says Bihar deputy chief minister Sushil Modi

Sushil Modi, a member of the GST Council, has also suggested that price tags displayed on items be inclusive of all taxes.