• CCI AD FROM 5th April 2021

To give composition scheme for supplier of services with a tax rate of 6% having annual turnover in preceding year upto Rs 50 lakhs.

Circular No. ES/ 411 /2018-19                                                                   March 11, 2019

To: Members of the Council

Sub.: To give composition scheme for supplier of services with a tax rate of 6% having annual turnover in preceding year upto Rs 50 lakhs.

Dear Member,

We would like to inform you that during the 32nd GST Meeting held on 10th January 2019, various major decisions were taken. One such decision was eligibility/availability of composition scheme for service providers and mixed suppliers which were earlier not available. So far, this scheme was applicable only for manufacturers and traders.

In order to implement the said decision, the Central Board of Indirect Taxes and Customs have issued Notification No. 2/2019- Central Tax (Rate) dated 7th March, 2019 and Notification No. 2/2019- Union Territory Tax (Rate) dated 7th March, 2019 notifying that a Composition Scheme has been made available for Suppliers of Services (or Mixed Suppliers) with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the preceding Financial Year up to Rs 50 lakhs. This notification shall come into force w.e.f. 1st April, 2019.

For more information members may kindly refer to the above notification.

Thanking you,               

Yours faithfully,

S. BALARAJU
EXECUTIVE DIRECTOR