Composition scheme option open till April 30
Businesses applying for new registration may avail of the benefit in Form GST REG-01 when filing for registration.
New Delhi: The Central Board of Indirect Taxes and Customs (CBIC) has given service providers with turnover of up to Rs 50 lakh time till April 30 to opt for the composition scheme and pay 6 per cent GST.
This option to pay goods and services tax (GST) would be effective from the beginning of the financial year or from the date of obtaining new registration.
“The 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 April 30,” said a CBIC circular.
The GST Council, headed by Finance Minister Arun Jaitley and comprising state ministers, in its meeting on January 10 had permitted service providers and those dealing in both goods and services with a turnover of up to Rs 50 lakh to opt for composition scheme with effect from April 1.
Service providers opting for the composition scheme can charge a lower tax rate of 6 per cent from customers, as against the higher rates of 12 and 18 per cent for most services under GST. Businesses applying for new registration may avail of the benefit in Form GST REG-01 when filing for registration.