GST Composition Scheme for Services 2019 (Conditions to claim)

GST Composition Scheme for Services 2019, Conditions to claim GST Composition Scheme for Services. The Government has introduced a composition levy under GST Law to simplify the taxing mechanism for small taxpayers to keep up with GST Compliance.

Conditions to claim GST Composition Scheme for Services:

  1. Turnover in Previous Year (i.e. FY 2018-19) should be Rs. 50 lacs or below.
  2. Not opted for composition under section 10(1) of CGST Act.
  3. Not engaged in making any supply which is not leviable to tax under GST.
  4. No Inter-State Supply.
  5. Neither a Casual Person nor a Non-Resident Taxable Person.
  6. Cannot make supply through E-Commerce who is required to collect TCS u/s 52
  7. More than one registrations taken on same PAN then all registered persons should pay tax @6%
  8. No Tax shall be collected from the recipient.
  9. No ITC available.
  10. ‘BILL OF SUPPLY’ shall be issued instead of Tax Invoice.
  11. Following shall be mention at the top of bill of supply:
    ‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.
  12. Paying tax under this notification then he is required to pay tax @6% on all types of supplies of goods or services or both notwithstanding any other notification issued under sub-section (1) of section 9 or under section 11 of said Act.
  13. To pay RCM on inward supplies under sub-section (3) or sub-section (4) of section 9 of said Act at the applicable rates.
  14. Value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account for computing aggregate turnover in order to determine limit of 50 Lakhs.
  15. Not engaged in making supply of goods i.e. Ice-Cream, Pan Masala and Tobacco.

This notification shall come into force on the 1stday of April, 2019.