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Shyam Gupta (Student) (79 Points)

26 February 2020

I am Comercial coaching service provider. can i opt composition scheme?

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13 Replies

MOHIT JOSHI (229 Points)
Replied 27 February 2020

Yes u can opt. u have to pay tax CGST & sgst @ 3% respectively

1 Like

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 27 February 2020

@ Mr Shyam Gupta.,

I think No...

You can't opt composition scheme...

Wait on others view...

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 27 February 2020

There is no specific restriction on commercial coaching service provider to opt composition scheme.
If the coaching is also outside states through video lectures then there is trouble..

But check other conditions like turnover limit, .You should not issue tax invoice and should not collect GST,You will not be eligible for input credit.

Please find below few conditions as per the information available with me

Conditions to be fulfilled to be eligible under the scheme:

      The supplier of service must have a turnover of less than Rs. 50 lakh in the previous financial year.

     The supplier should not be supplying non-taxable goods.

      The supplier should not be engaged in making inter-state supplies.

     The supplier should not supply through an e-commerce operator.

     The supplier should not be a casual taxable person or non-resident taxable person.

       The supplier must issue a bill of supply instead of a tax invoice. The supplier must mention the words ‘composition taxable person’ on the bill of supply.

      The supplier cannot charge and collect tax from the customer.

     The supplier cannot claim the input tax credit.

  The supplier must pay normal tax for reverse charge supplies.

The supplier cannot be supplying ice cream and other edible ice, whether or not containing cocoa, pan masala and tobacco and manufactured tobacco substitutes

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RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 27 February 2020

Also there is no "SPECIFIC PROVISION***" for purely service provider opt composition scheme...

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 27 February 2020

Hmm.

The composition scheme for service providers gives an option to taxpayers rendering services having aggregate annual turnover up to Rs. 50 lakh to pay tax at a nominal rate, subject to conditions.

The following persons can opt into this scheme:

Supplier of services only (i.e., service providers)

Suppliers of goods and services (i.e., those suppliers who were not eligible for composition scheme earlier)

Note: Suppliers of goods and restaurant service providers were earlier eligible under the composition scheme.

1 Like

Shyam Gupta (Student) (79 Points)
Replied 27 February 2020

Ok sir

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 27 February 2020

Originally posted by : Tax Consultancy Services
	Hmm.The composition scheme for service providers gives an option to taxpayers rendering services having aggregate annual turnover up to Rs. 50 lakh to pay tax at a nominal rate, subject to conditions.The following persons can opt into this scheme: Supplier of services only (i.e., service providers) Suppliers of goods and services (i.e., those suppliers who were not eligible for composition scheme earlier) Note: Suppliers of goods and restaurant service providers were earlier eligible under the composition scheme.

Thank You for the Detailed Explain...

But.,

Can You give the "SPECIFIC** PROVISIONS / ACT / RULES"

1 Like

Shyam Gupta (Student) (79 Points)
Replied 27 February 2020

Registration krte waqt business ke options diya hue the like Retail business, wholesale etc etc Service provider ka option diya huaa h but usko hide kr rkha h main tick nhi kr pa rha hu to ab main registration kaise kru composition scheme me