Composition scheme
This query is : Resolved
Imraan Khan
(Querist)
11 June 2019
We have a man power supplier who bills nearly for Rs.2 crores/anum. Now my HR wants to split the single man power supplier in to 4 so as to get benefit under composition scheme for service providers which is 6% if annual turnver below Rs.50 lacs. Earlier we used to pay 18%. is it right to do so. plz mention consequences also.
CA R SEETHARAMAN
(Expert)
11 June 2019
GST is a pass through item for 18%. Composition scheme will not allow pass through of 6% GST, so to that extent it's a loss to you.
Besides penal proceedings and you have to bear GST 6% this option is not advisable.
Besides penal proceedings and you have to bear GST 6% this option is not advisable.
Imraan Khan
(Querist)
11 June 2019
Ours is a Dairy products manufacturing company and most of our products are not taxable. we cannot claim input tax credit. thats why HR proposing to have 4 man power supplier (service providers) so that we can pay only 6% GST.
CA R SEETHARAMAN
(Expert)
11 June 2019
No problem you can do so.
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