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Composition scheme for photocopy/xerox

Percy Variava (45 Points)

18 June 2021

can we go for composition scheme for service provider like photocopy shop if turnover less then 50 lacs annually

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 18 June 2021

I think photocopying is regarded as business for the purpose of GST.

Yes, you may opt for composition scheme up to a turnover of Rs.1.5 cr (unless you don't fall under special category states)

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prasad Nilugal (3914 Points)
Replied 18 June 2021

You can Opt , Composition Scheme -2 , as per notification 2/2019 dated 7/3/2019 . Your turnover should be less than 50 lacs ,and you have to fulfill all conditions under said notification .

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 18 June 2021

Yes composition scheme can be opted as turnover is less than 1.5 crores rupees

Percy Variava (45 Points)
Replied 18 June 2021

But the confusion is that only traders n manufacturers can go for composition but service providers can't....n this photocopy is counted as service...I don't know why

prasad Nilugal (3914 Points)
Replied 18 June 2021

Yes , that's why I suggested to refer Notification 2/2019 (CT) rate dated 7/3/2019 . you have to pay 3%CGST and 3% SGST. This scheme is applicable to service provider . you have to fullfill all conditions in said notification .

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 18 June 2021

After last amendment, even service providers having turnover up to ₹50 lacs can opt for composition scheme.

Percy Variava (45 Points)
Replied 18 June 2021

Any idea or number about this ammendment or notification

prasad Nilugal (3914 Points)
Replied 18 June 2021

Notification 2/2019 (CT) rate dated 7/3/2019; Composition -2 Scheme .

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Percy Variava (45 Points)
Replied 18 June 2021

THANKYOU all of you for your guidance..
what abt the threshold level fr registration of services...it shld also be 50 lac n not 20 lacs

CMA Poornima Madhava (CMA) (13112 Points)
Replied 18 June 2021

Threshold limit to trigger registration is 40 lacs (for business) and 20 lacs (for service providers). Once you cross the limit, you need to register under GST and choose composition scheme (instead of regular scheme) if you want to opt for composition.