Service Providers can opt for Composition Scheme till July 31: CBIC

The Central Board of Indirect Taxes and Customs ( CBIC ) has extended by three months till July 31 the deadline for service providers with a turnover of up to Rs 50 lakh to opt for the composition scheme and pay six per cent Goods and Services Tax (GST). The Circular said that, “a registered person who wants to opt for payment of central tax @ 3% by availing the benefit of the said notification, may do so by filing intimation in the manner specified in sub-rule 3 of rule 3 of the said rules in FORM GST CMP-02 by selecting the category of registered person as “Any other supplier eligible for composition levy” as listed at Sl. No. 5(iii) of the said form, latest by 31st July, 2019. Such person shall also furnish a statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (3) of rule 3 of the said rules.” Earlier, CBIC had issued a circular 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 30 April, 2019. The service providers and suppliers of both goods and services with a turnover of up to Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 percent from 1st Aprill. Earlier, the GST Council had recommended that the Composition Scheme, under which small traders and businesses pay a 1 percent tax based on turnover, can be availed by businesses with a turnover of Rs 1.5 crores.