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Composition Scheme For Service Providers

Balraj Karrolla (49 Points)

04 December 2019

what is the Gst Rate for Service Provider...?
for Turnover Exceeding 1cr in Financial Year.

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Raksha (Student CA Final ) (397 Points)
Replied 04 December 2019

Service provider can obtain composition scheme if the aggregate turnover is not exceeding 50 lakh Rs with other condition as prescribed according to notification number 2/2019 dated 7th March 2019.
Rate is 6% i.e 3% CGST 3% SGST

IF YOUR TURNOVER EXCEEDING 1 CR THAN YOU CANNOT OPT FOR COMPOSITION SCHEME AS A SERVICE PROVIDER!

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Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 04 December 2019

Since the turnover is above 50L which is threshold for service provider to opt for composition scheme, in your case you cannot opt for composition scheme. Kindly check your GST rate as per your SAC code. Majority of services are covered under 18% GST rate.

Shivam RC (Student) (23683 Points)
Replied 04 December 2019

If your Aggregate Turnover is more than Rs. 1 crore, then you cannot opt for COMPOSITION SCHEME.

As per Notification No. 02/2019 - CT dated 07th March 2019, SERVICE PROVIDERS can opt for COMPOSITION SCHEME if their Aggregate Turnover does not exceeds Rs. 50 lakhs. The Rate of GST payable is 6% ( CGST @ 3% + SGST @ 3% ).

So you have to go for REGULAR SCHEME REGISTRATION wherein the GST Rate is around 18% .

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