EXTENSION OF LAST DATE UPTO 31.7.2017 TO OPT FOR AVAILING THE BENEFIT OF ALTERNATE COMPOSITION SCHEME UNDER GST IN INDIA
The Goods and Services Tax Act,
2017 came into force in India with effect from 1.7.2017.
The Central Government has made
an alternate composite scheme available to suppliers of services or mixed
supplies, who were not eligible for the primary composition scheme.
The taxpayers whose annual
turnover in the preceding financial year did not exceed Rs. 50 lakhs and opting
to pay tax under the alternate scheme will have to pay tax at the rate of 6%
(3% CGST + 3% SGST) of their turnover vide circular No.97/16/2019 dated
5.4.2019.
The last date to file option in
FORM GST CMP-02 for availing the benefit of the alternate composition scheme
has been extended upto 31.7.2019 instead of 30.4.2019.
The relevant notifications were
given below for ready reference:
Press Release
Extension of last date for availing
the benefit of alternate composition
scheme
04 July 2019
Vide notification No. 02/2019-Central Tax (Rate) dated 07.03.2019, as
amended by notification No.
09/2019-Central Tax (Rate) dated 29.03.2019, an
alternate composition scheme has been made available to those suppliers of services
or mixed suppliers, who were not eligible for the primary composition scheme. Only those taxpayers are eligible
for
this alternate
scheme
whose annual turnover
in the
preceding financial year did not exceed Rs.
50 lakhs. Taxpayers opting to pay tax under this scheme will pay tax at the rate of 6% (3% CGST
+3%
SGST) of their
turnover. Vide Circular No. 97/16/2019-GST dated 05.04.2019, the
last date for
registered persons
for filing the intimation in FORM GST CMP-02 for availing the
benefit of the
alternate composition scheme was fixed at 30.04.2019.
2. In the 35th meeting of the
GST
Council held on
21.06.2019, it was
recommended that the last date for filing the said intimation may be extended. Accordingly, a corrigendum dated 01.07.2019 to Circular No. 97/16/2019-GST has been issued extending
the last date for filing the intimation for availing this benefit from 30.04.2019 to 31.07.2019.
3. Eligible taxpayers are encouraged to avail the benefit of the
alternate composition scheme by
applying on or
before 31.07.2019.
*****
F. No. CBEC-20/16/04/2018
– GST (Pt. I) Government
of India
Ministry
of Finance
Department of Revenue
Central
Board of Indirect Taxes
and
Customs
GST Policy Wing
****
To,
Circular No.97/16/2019 GST
New Delhi, Dated the 5th April 2019
The
Principal
Chief
Commissioners / Chief Commissioners
/
Principal
Commissioners / Commissioners
of Central Tax (All)
The Principal Director
Generals / Director Generals (All) Madam/Sir,
Subject: Clarification regarding exercise of option to pay tax
under notification No. 2/2019-
CT(R)
dt 07.03.2019 – Reg.
Attention is invited to notification No. 02/2019-Central Tax (Rate) dated 07.03.2019
(hereinafter referred to as “the
said notification”) which prescribes rate of central tax of 3% on first supplies
of goods or services or both upto an aggregate turnover of fifty lakh rupees made
on or after the 1st day of April in any financial year, by a registered person whose aggregate annual turnover in the preceding financial year was fifty
lakh rupees or below. The said
notification, as amended by notification No. 09/2019-Central Tax
(Rate) dated
29.03.2019,
provides that Central Goods and Services Tax Rules, 2017 (hereinafter
referred to as “the
said rules”), as applicable to a person paying
tax under section 10 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “the said Act”) shall, mutatis mutandis,
apply to a person
paying tax under
the said notification.
2. In order to clarify the
issue and
to ensure uniformity in
the implementation
of the provisions of the law across field formations, the Board, in exercise of its powers conferred by
section 168 (1) of the
said Act, hereby clarifies the issues raised as
below:–
(i) a registered person who wants to opt for payment of central tax @ 3% by availing the benefit of the said notification, may do so by filing
intimation in the manner specified in sub-rule
3 of rule 3 of the said rules in FORM GST CMP-02 by
selecting the category
of registered person as “Any other supplier eligible for composition levy” as listed at Sl. No. 5(iii) of the said form, latest by
30th April, 2019. Such person shall also furnish a statement in FORM GST ITC-
03 in accordance with
the
provisions of sub-rule (3) of
rule 3 of the said rules.
(ii) any person who applies for registration and who wants to opt for payment of central tax
@ 3% by
availing the benefit of the said notification, if eligible, may do so by indicating
the option at serial no. 5 and 6.1(iii)
of FORM GST REG-01 at the time of filing
of application for
registration.
(iii) the option of payment of tax by availing the benefit of the said notification in respect of any place of business in any State or Union territory shall be deemed to be applicable in respect of
all other places of business registered on the same Permanent
Account Number.
(iv) the option to pay tax by availing the benefit of the said notification would be effective from
the beginning of the financial year or from
the date of registration in cases where
new registration
has been obtained during the
financial year.
3. It may be noted that the provisions contained in Chapter II of the said Rules shall mutatis
mutandis apply to persons paying tax by availing the benefit of the said notification, except to
the extent specified in para 2 above.
4. Difficulty if any, in the implementation
of this circular may be brought to the notice of
the Board. Hindi version would
follow.
(Upender
Gupta) Principal Commissioner (GST)
*****
[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. 02/2019 – Central Tax
New Delhi,
the 29th January, 2019
G.S.R. …..(E).— In
exercise of the powers conferred by sub-section (2) of section 1 of the Central Goods and Services
Tax (Amendment) Act, 2018 (31 of 2018), the Central Government
hereby appoints
the 1st day
of February,
2019, as
the date on
which the
provisions of the Central Goods and Services Tax (Amendment) Act, 2018 (31 of 2018), except clause (b) of section 8, section 17, section 18, clause (a) of section 20, sub-clause (i)
of clause (b) and sub-clause (i) of clause (c) of section 28, shall come into force.
[F.No.20/06/16/2018-GST
(Pt.
II)]
(Gunjan Kumar Verma) Under Secretary to the Government of India