What is Notification No 2/2019
This is composition scheme for service provider
Who is eligible for Notification No 2/2019 (composition scheme for service provider)
1. Registered person whose aggregate turnover in preceding financial year was 50 lakh or below.
2. who is not eligible for composition scheme U/S 10(1)of CGST Act
ELIGIBILITY CONDITIONS (in current year)
- Not engaged in supply of goods which are non taxable under GST Act.
- Not engaged in making any inter state outward supply of goods.
- Not engaged in supply of goods through an E-commerce operator.
ADDITIONAL CONDITIONS:-
- Taxable person opting composition scheme shall not collect tax on outward supplies
- Taxable person opting composition scheme will not be eligible to claim input tax credit
- Would be applicable for all businesses having registrations under same PAN of the conditions required to opt for composition scheme
RESTRICTIONS AS PER COMPOSITIONS RULES:-
- He is neither a casual taxable person nor a non-resident taxable person
- Goods held in stock as on appointed date are not purchased:-
a. In course of interstate trade or commerce
b. Imported from place outside india
c. From his agent or principal outside state, where the option is exercised under sub-rule 1 of rule 1
d. From unregistered person under RCM basis, provided he can opt the scheme on payment of tax on RCM basis - Not Engaged in Supply of ice-cream, pan masala, tobacco & tobacco substitute.
COMPOSITE TAX RATE & IN CURRENT YEAR:-
| Tax | CGST | SGST | Total |
| Rate for GST | 3% | 3% | 6% on First Supply of Services |
EXPLANATION-first supplies of goods or both shall ,include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he become liable for registration under the Act.
What if turnover exceed 50 Lakh during the year
When supply crossed Rs. 50 lakh the person automatically get converted in normal scheme