SERVICES UPTO 50 LAKHS ELIGIBLE FOR COMPOSITION LEVY UNDER GST ACT 2017
The Goods and Services Tax
Act, 2017 came into force in India with effect from 1.7.2017.
At the time of introduction of
GST Act, 2017 only Goods are eligible for composition option as shown below:
COMPOSITION RATE OF TAX
Sl No.
|
Category of registered persons
|
Rate of tax
|
1
|
2
|
3
|
1
|
Manufacturers, other than
manufacturers of such
goods as may be notified by the Government
|
One per cent.
|
2
|
Suppliers making supplies referred
to in clause (b) of paragraph 6 of Schedule II
|
Two and a half per cent.
|
3.
|
Any other supplier eligible for composition
levy under Section 10 and these rules
|
Half per cent
|
The GST Council in its 32nd
meeting held on 10.1.2019 has decided to levy GST on certain services under
composition scheme and hence the Government has amended Rule 7 of the CGST
Rules 2017 and for that purpose the words “goods” is substituted with “goods
and services” and in Chapter II, in the heading the words “Composition Rules”
were substituted as “Composition Levy”.
The Central Government has also decided to bring certain services under composition levy taxable at the rate of 6% GST i.e. 3% CGST and 3% SGST and the list of services eligible for composition levy yet to be announced and hence rule 7 has been modified well in advance.
The Central Government has also decided to bring certain services under composition levy taxable at the rate of 6% GST i.e. 3% CGST and 3% SGST and the list of services eligible for composition levy yet to be announced and hence rule 7 has been modified well in advance.
The amendment came
into force with effect from 1.2.2019.
The relevant notification is
given below for ready reference.
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i)]
Government of India Ministry of Finance
(Department of Revenue)
[Central Board of Indirect Taxes
and
Customs]
Notification No. 03/2019 – Central Tax
New Delhi,
the 29th January, 2019
G.S.R……(E). - In exercise of the powers
conferred by section 164 of the Central Goods and
Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules
further to amend the Central Goods
and
Services
Tax Rules, 2017, namely:-
1. (1) These rules may be called the Central Goods and Services Tax (Amendment) Rules,
2019.
(2) Save as otherwise provided in these rules, they shall come into force on the first day of
February, 2019.
2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as
the
said rules), in Chapter-II, in the heading, for the words “Composition Rules”, the words, “Composition Levy” shall be substituted.
3. In the said rules, in rule 7, in the Table, against serial number (3), in column (3), for the
word “goods”, the words, “goods and services” shall be substituted.
[F.No.20/06/16/2018-GST (Pt. II)]
(Gunjan Kumar Verma) Under Secretary to the Government of India
Note:- The principal rules were published in the Gazette of India, Extraordinary, Part
II,
Section 3,
Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June,2017, published vide number G.S.R 610 (E), dated the 19th June, 2017 and last amended vide notification
No. 74/2018 - Central
Tax, dated the
31st December, 2018,
published
vide number G.S.R 1251 (E), dated the 31st December, 2018.
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i)]
Government of India Ministry of Finance
(Department of Revenue)
[Central Board of Indirect Taxes
and
Customs]
Notification No. 05/2019 – Central Tax
New Delhi,
the 29th January, 2019
G.S.R.
(E).- In exercise of the
powers conferred by sub-section (1) of section 10 of the
Central Goods and Services Tax
Act, 2017 (12 of 2017), the Central Government, on the
recommendations of the Council, hereby makes the following
further amendments in the notification of the Government of
India in the Ministry of Finance (Department of Revenue)
No.8/2017 - Central Tax, dated the 27th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 648 (E), dated the 27th June, 2017, namely:-
In the said notification, for the portion beginning with the words “an amount calculated at the
rate of” and ending with the words
“half per cent.
of the turnover of taxable supplies of goods
in
State in case of other suppliers”, the words
and
figures, “an amount of tax calculated at the rate
specified
in rule 7
of the
Central Goods and Services
Tax Rules, 2017:” shall
be
substituted.
2. This notification shall come into force with effect from the 1st day of February, 2019. [F.No.20/06/16/2018-GST
(Pt.II)]
(Gunjan Kumar Verma) Under Secretary to the Government of India
Note: - The principal notification
No.8/2017- Central Tax, dated the 27th June, 2017, was
published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 648 (E), dated the 27th June, 2017 and was last amended vide notification No.
1/2018-Central Tax, dated the 1st January,2018, published vide number G.S.R 02 (E), dated
the 1st January,2018.