Happy Sunday members,
I just want to get clarity on the new composition scheme (6%) w.e.f. 1.4.2019.
As per the new composition scheme, will there be no tax on first 20 lakhs turnover? Then for next 30 there is 6% tax rate scheme.
Is this correct?
Thanks
| Originally posted by : RAJA P M | ||
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No... Once registered under GST then GST chargeable/Payable from the 1 rupee billing... |  |
Thanks Raja Sir. I read this article by Umesh Sir. It says that for first 20 lakhs aggregate turnover no tax and then for next 30 there is 6% tax rate. It is unlike the present system, wherein both normal and composition system GST is payable from the firts sales bill.
| Originally posted by : Pankaj Rawat | ||
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Refer Circular No. 97/16/2019-GST dt 5/4/2019 | |
Thanks Pankaj Sir.
There is no mention in the notification or circular that for first 20 lakhs aggregate turnover no tax and then for next 30 lakhs, 6% is the tax rate.
What about those taxpayers who have already filed CMP-02, considering the date to be 31st March 2019. Will they be taken to 1% tax rate? What if they are not eligible for old composition scheme but for new composition scheme? How they can change now to new composition scheme of 6%?
Sir, cancellation of old no. and applying new composition scheme with new PAN is not possible.
The taxpayer is not eligible for old composition scheme as he is into catering business.
The government should have made this clear earlier. Now option must be given for changing the section/rate of composition.
CAclubindia
