IS GST COMPOSITION SCHEME NOW APPLICABLE FOR CONTRACTOR?

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This discussion clarifies the applicability of the GST composition scheme for contractors providing services. Previously unavailable, the scheme is now an option for works contractors. If eligible, the GST rate applicable is 6%, with a turnover limit of Rs 50 Lakhs.

BISWAJIT MAIKAP

BISWAJIT MAIKAP (Querist)
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28 February 2020 MY CLIENT GIVES ELECTRICAL SERVICE BY CONTRACT. NOW HE WANT A GST REGISTRATION. SO , MY QUESTION IS , IS GST COMPOSITION SCHEME NOW APPLICABLE FOR CONTRACTOR SERVICES? IF YES , THEN HOW MANY % GST WILL APPLY FOR HIM? PLEASE HELP ME.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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28 February 2020 Composition scheme is not available to works contractors as it is treated as service as per Para 6 (a) of Schedule II to the CGST Act, 2017 under GST
GST Rate is 6% and the turnover limit is Rs 50 Lakhs

CA Anita Bhadra

CA Anita Bhadra (Expert)
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28 February 2020 Please read " now " in place of not above

CA Anita Bhadra

CA Anita Bhadra (Expert)
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28 February 2020 Composition scheme is now available to works contractors as it is treated as service as per Para 6 (a) of Schedule II to the CGST Act, 2017 under GST GST Rate is 6% and the turnover limit is Rs 50 Lakhs

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