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Composition Scheme

Hemanth C L (60 Points)

25 March 2019

Can works Contractor opt to Composition Scheme???....

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12 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160396 Points)
Replied 25 March 2019

From 01.04.2019, only service provider having upto 40 lakhs turnover in preceding year will be eligible for composition scheme at 6% GST rate. Check your eligibility.

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 25 March 2019

but if for government contract don't opt for composition

Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 25 March 2019

Mr. Dhirajlal
I guess Iimit for composition of service provider is 50 lakhs and not 40 lakhs

shailendra shukla (Bhopal) (1741 Points)
Replied 25 March 2019

why a government contractor cannot apply for new composition scheme...??? because i guess the tds(if any) which might be deducted can be claimed by composition dealer as well...

correct me if m wrong....... or any other reason not to opt that?...

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 25 March 2019

For government contract you have to give gst regular bill otherwise they will deduct the gst and make payment to you

shailendra shukla (Bhopal) (1741 Points)
Replied 25 March 2019

yes but we can claim the same noh?.... we can claim or not???

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 25 March 2019

How you will claim if you are composite dealer

shailendra shukla (Bhopal) (1741 Points)
Replied 25 March 2019

it's not input tax..... it is gst tds which will be credited in electronic cash ledger and not credit ledger..... that's y m having doubt regarding that......... is there any notification or clarification regarding this???? i think he can claim.....

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 25 March 2019

No i think because it is auto populated in gst portal if you are regular dealer you can check and accept the same then only it will reflect in your cash ledger and if you are composite dealer it will not be auto populated because there is no tds column in gstr4 i think

shailendra shukla (Bhopal) (1741 Points)
Replied 25 March 2019

okay then it might be same as you said... if there is no "tds and tcs credit received" tab for this for compostion dealer...

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 27 June 2019

Yes the composit dealer can supply to Government & if the contract value exceeds 2.5lac , the Govt is liable to deduct TDS . Kindly refer S.No.6.2.3 in SOP released on Cbic site.