Composition scheme for service provider

261 views 6 replies

Sanket Galande

CA-Inter

126 Points Joined September 2016

Dear Sir,

One of my client is in medical services. He is running a clinic along with a medical. He is billing both services medical as well as clinic ( Surgery, etc) from a single GST No. Total Turnover of his business is as follows :

1. Trading in Medicines (Retail) is upto Rs. 70 Lakhs

2. Turnover from OPD (General Practice) is Rs. 20 Lakhs (Exempt Service)

3. Turnover from Surgeries (Cosmetic & Plastic Surgery) is upto Rs.20 Lakhs (Taxable)

Thus, his total turnover for FY 2018-19 is below Rs.1.5 Cr. Whether He can opt for Composition Levy for Services (Turnover Below Rs.50 Lakha) & Goods (Turnover Below Rs. 1 Cr) for FY 2019-20 ?

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Thanks & Regards,

CA Parag Lunkad,
SUNSVG & Associates | Chartered Accountants | 020- 27515581/ 82/83 |

Replies (6)

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

NO......

In terms of Notification 14/2019 CT & Read with Amendment Act , 31 of 2018, The limit for composition scheme from 1/4/2019 shall be 1.5 Crore , But he can provide services upto 10% of turnover for previous Year .

2. As per Notification 2/2018 CT (r) , whose aggregate turnover in the preceding
financial year was fifty lakh rupees or below can provide Goods & Services by Charging GST 6% on Turnover (without ITC)

Hence You do not fall under any of 2 option above .

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

No... He and his Service is not eligible for composition scheme...

Sanket Galande

CA-Inter

126 Points Joined September 2016

But a person can opt for composition levy, if he is dealing in both taxable & exempt supplies?

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

Dear Sanket :
you are correct the person can opt for composition scheme if he is dealing in exempted & taxable supplies , But there are condition specified in above mentioned act & Notification & as per Nature of supplies with Fiqures provided by you in your query, you are not liable to Opt for composition scheme.

Kindly Refer Notification 14/2019 CT with Amendment Act 31, of 2018 & Notification 2/2018 CT (r)