Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Gst composition for service provider. interstate service?

Priya G. (122 Points)

17 March 2019

I am a service provider: online advertiser advertising in my website.

Want to opt-in for GST composition scheme 2019-2020. I am well below threshold of 50Lakhs.

IF I advertise in my website for a client outside my state, Will it be inter-state transaction? Is it ok by composition scheme? I know that goods cannot be sold out of state. How about services?

Reply
Follow
Share

5 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 March 2019

Will it be inter-state transaction?
- Yes...

Is it ok by composition scheme?
- No.

I know that goods cannot be sold out of state. How about services?
- No way for inter state supplies under composition scheme...

***Also You can't opt composition scheme. Bcoz, You are a Service Provider.
Composition Scheme & it's new amendment applicable to Who is deal business as per Composition rule (Manufacturing &/ Trading) and They can avail Servicing options based on their supplies (as their Manufacturing &/ Trading).

Upgrade to CAclubindia Pro. Subscribe Now!

Sajal Mandal (294 Points)
Replied 17 March 2019

You can't apply for composition scheme.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 March 2019

As per Notification 2/2019 CT (R) , the Govt has brought the new scheme of composite dealer whose Turnover is not exceeding 50Lac ,..... can provide Services But ..CANNOT DO INTERSTATE SUPPLY OF SERVICES. Hence if you are doing any interstate supply cannot opt for the same .

Note : Rate of Tax is 6%(CGST+SGST) without ITC

1 Like