Eligibility of comp scheme dealer to prov services

This query is : Resolved

Saksham Agrawal (Querist)
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11 January 2019 I am looking for and trying to find and know about the eligibility of a supplier who supplies goods as well as some services (incidental to his business) to opt for composition scheme under gst especially w.r.t. the FY 2018-19.

Although when I came to read the recommendations of the 28th GST council meeting held on 21.07.18 one of the bullet points of which read as follows:

“Composition dealers to be permitted to supply services (other than restaurants) upto 10% of turnover value in the preceding year or INR 5 lakhs, whichever is higher;”

However going through the notifications issued for giving effect to above recommendations I don’t find any notifications which mentions such allowance for composition dealers.

So I am looking for if any notifications for above even exist so as to allow composition dealers to provide services along with goods.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 January 2019 In the recent GST council meeting it was decided to extend the composition scheme to small service providers with an annual turnover of up to ₹50 lakh, at a tax rate of 6%.

Saksham Agrawal

Saksham Agrawal (Querist)
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11 January 2019 But sir that would be applicable only wef 01.04.19. So what about the position in FY 2018-19 or even before that?

Saksham Agrawal

Saksham Agrawal (Querist)
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08 January 2020 I have resolved the issue, quite before this date, and the resolution is the CGST Amendment Act, 2018, wherein the aforementioned allowance to Composition dealers by allowing provision of services alongwith supply of goods to the extent of Rs. 500000/- or 10% of Total Turnover, w.e.i. higher. Anyone facing similar problem may just download the official gazette of the above amendment act and find the same in the initial 2-3 pages itself.

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