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Very urgent relating to composition dealer

23 February 2019

As of now composition dealer can provide service upto RS.5 lacs my questions are:
1.whether he can provide any kind of service?
2. what is the effective date and applicablity of circular relating to it.
3. what is the tax rate on such service required to be deposited?

it's very urgent, please help me in solving such query as soon as possible

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9 Replies

Nivedita (SME - Finance) (758 Points)
Replied 23 February 2019

The following people cannot opt for the scheme: Supplier of services other than restaurant related services Manufacturer of ice cream, pan masala, or tobacco A person making inter-state supplies A casual taxable person or a non-resident taxable person Businesses which supply goods through an e-commerce operator

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Nivedita (SME - Finance) (758 Points)
Replied 23 February 2019

Update as on 10th Jan 2019 - As per 32nd GST Council Meeting held on 10th Jan 2019, Service Providers can opt into the Composition Tax Scheme, and the Government has set the threshold turnover for service providers at Rs. 50 lakhs to be eligible for this scheme.

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Nivedita (SME - Finance) (758 Points)
Replied 23 February 2019

For rates etc. - https://cleartax.in/s/gst-composition-scheme#rates

pritesh (CA Final student) (7101 Points)
Replied 23 February 2019

Wheather if you are dealing with the goods then only you can opt for composition scheme..which service provided does not exceed 10% of turnover or 5lakhs whichever is higher.

the rate will be 1%

Anmol Singla (808 Points)
Replied 23 February 2019

can we opt out of composition scheme at any time
as I want to opt out of composition scheme and in how many days we need to give intimation of change in scheme