Compositon scheme

126 views 2 replies
Compositon scheme avelibale for Govt Civil Contrector?
Replies (2)
In service sector compoaition scheme available only to Resturant services.... you may go with Presumptive scheme

The Works Contracts has been defined in Section 2(119) of the CGST ACT 2017 as “works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.

Govt Civil Contract Services are aligned to Works Contract Services.

Earlier Composition Scheme didnt specify on applicability on Works Contract Services.As per Section 10 of CGST ACT 2017, which said that it is only applicable on Manufacturers(other than those of notified goods like ice-cream,pan-masala and tobacco),restaurants/caterers(not serving alcohol) and traders.But  32nd GST Council Meeting  clarified that Composition Scheme Shall also be applicable on service providers having turnover upto Rs 50 lacs per annum wherein rate applicable shall be 6%. Therefore in such a case if turnover of the said service is upto Rs 50 lacs p.a.and conditions regarding eligibilty of the scheme is fulfilled,the composition scheme shall be applicable.The Taxpayer shall have to issue Bill of Supply instead of Tax Invoice and shall not be eligible to take ITC in case one opts for composition scheme.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Threads
Loading