dear respected sir/madam,
can Consultancy Services come under composition schemes and if yes please tell me - what will be tax rate ?
Under the provisions of the GST Act, a range of businesses in the manufacturing and services sectors including restaurants as well as traders are allowed to register under the composition scheme.
However, the GST composition scheme is not applicable to the following persons/entities*:
- Non-resident taxable person or a casual taxable person
- Businesses/persons supplying goods through an e-commerce portal operator that collects tax at source (u/s 52).
- Businesses/persons engaged in inter-state supply of goods
- Manufacturer of ice cream and other edible ice with/without cocoa as additive
- Manufacturer of tobacco products, tobacco substitutes and pan masala
- Businesses/persons who have purchased goods from unregistered supplier (allowed if GST is paid on such goods on reverse charge basis)
- Suppliers involved in the supply of goods that are exempt under GST Act
At the 32nd GST Council Meeting held on 10th January 2019, the GST composition scheme limit for states was increased to Rs. 1.5 crore i.e. businesses/individuals with annual turnover of up to Rs. 1.5 crore can opt for registration under the GST composition scheme (applicable from 1st April 2019 onwards).
6% of the turnover for businesses providing services/mixed services (other than restaurant services). This is applicable from 1st April 2019 onwards.
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