Service providers can now opt for a composition scheme until July 31.
NEW DELHI: The tax department has extended for three months until July 31 the deadline for service providers with a turnover of up to Rs 50 lakh to opt for the composition scheme and pay 6 percent of the tax on goods and services (GST). the GST Advice , chaired by finance minister and comprising state counterparts, has permitted such service providers to opt for composition scheme and pay taxes at reduced rate of 6 per cent beginning April 1, 2019.
This goes against the higher rates of 12 and 18 percent charged for most services under GST.
In a circular, the Central Board of Indirect Taxes and Customs ( CBIC ) said suppliers who want to opt for composition scheme would have to file Form GST CMP-02 by selecting 'any other supplier eligible for composition levy' latest by July 31, 2019.
the CBIC had earlier marked April 30, 2019, as the deadline for service providers to opt for the scheme.
the GST composition scheme until now it was available to merchants and product manufacturers with an annual turnover of up to 1 crore of Rs. This threshold has also been increased to Rs 1.5 crore since April 1.
Bajo el esquema, the comerciantes y fabricantes están obligados a pagar solo un 1 por ciento de GST en bienes que de otra manera atraen un impuesto más alto de 5, 12 o 18 por ciento. A estos distribuidores tampoco se les permite cobrar GST a the clientes.
Of the 1.22 crore businesses registered under GST, about 17.5 lakh have so far opted for the composition scheme .