Eligibility for Composition Scheme for Services – 6% GST

*Conditions to claim Composition Scheme for Services:*

 

*1. Turnover* in Previous Year (i.e. FY 2018-19) should be *Rs. 50 lacs or below*.

 

*2. Not opted for composition* under section 10(1) of CGST Act.

 

*3. Not engaged* in making any supply which is *not leviable* to tax under GST.

 

*4. No Inter-State Supply*.

 

*5.* Neither a Casual Person nor a Non-Resident Taxable Person.

 

*6. Cannot make supply through E-Commerce* who is required to collect TCS u/s 52

 

*7. More than one registrations* taken on same PAN then *all* registered persons should pay *tax @6%*

 

*8. No Tax shall be collected* from the recipient.

 

*9. No ITC* available.

 

*10. ‘BILL OF SUPPLY’* shall be issued instead of Tax Invoice.

 

*11.* Following shall be mention at the top of bill of supply:

*‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.*

 

*12.* _Paying tax under this notification then he is required to pay tax @6% on all types of supplies of goods or services or both notwithstanding any other notification issued under sub-section (1) of section 9 or under section 11 of said Act._

 

*13.* To pay *RCM* on inward supplies under sub-section (3) or sub-section (4) of section 9 of said Act at the *applicable rates*.

 

*14.* Value of supply of *exempt services* by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, *shall not be taken* into account for computing aggregate turnover in order to determine *limit of 50Lakhs*.

 

*15. Not engaged in making supply of goods i.e. Ice-Cream, Pan Masala and Tobacco*.

 

*This notification shall come into force on the 1st day of April, 2019.*

Asked on March 15, 2019 in GST.
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