Sir, what rate in composition scheme for the Outdoor Caterer? In Normal Scheme he was paying 18%.

ITS 5%.........

Thanks Pankaj Sir.

I think that the Event Outdoor Caterers are not eligible for Composition Scheme. They can only apply in the new composition scheme of 6% GST.

Dear Pankaj Sir,

Do we have to wait for the returns/tax deposit forms for the 1st quarter 2019-20? or we should intimate the Jurisdictional Officer in the department through offline application that tax payer wants to opt for new composition scheme with 6% tax rate and not under 1% scheme.

Thanks

Friends, no tax @ 6% up to twenty lakhs is partially correct for newly registered tax payers who opted to pay tax by virtue of this notification. 

For this assertion, I will analyse notification issued by the department Notification No.2/Central Tax (Rate) issued on 07-03-2019 in this response. Above notification shall apply to both tax payers who has not obtained registration yet under C.G.S.T Act (S.G.S.T Act as the case may be) and who are already registered tax payers. For those, who already registered under this act and subject to such conditions as mentioned in conditions for notifications, can opt to pay tax @ 6% up to first supplies 50 lakhs during the financial year.

Eligibility criteria prescribed in notification from (1)(i) to (vii) are for registered tax payers. No specific condition exists for those who did not registered under this act. But Explanation provided in the notification under conditions tab deals with unregistered tax payers as it includes the words "For the purposes of this notification, the expression “first supplies of goods or services or both” shall, for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act."

Assume, a person has started his business of technical services in 01.04.2019 and he expects his turnover would be less than 20 lakhs. His turnover up to 30.09.2019 was 20 lakhs exactly and now he is required to obtain registration u/s.22(1). Now, he avails the benefit of Notification NO.02/2019 dated 07.02.2019 at serial no. 5 and 6.1(iii) of FORM GST REG-01. Now, as per wording above, he shall levy tax @ 6% from every supply he made from 01.10.2019 and he need to pay tax @ 6% on Non-taxable supplies made up to 30.09.2019 i.e.20 lakhs (Even though descripttion of service contained in the notification being - First supplies and such supplies includes turnover made up to date not liable for registration) . In this way, for unregistered person and who wants to apply for registration now under this notification - first 20 lakhs being exempted from levy of 6% during the financial year

Indeed, he can avail the benefit of notification for further supplies of 30 lakhs only from 01.10.2019 to 31.03.2020