New GST composition scheme for professionals having less than 50 lakh turnover
New Composition Scheme for Professionals like Interior Decorator, Architects, CA, with turnover of less than Rs.50 lakh has been implemented in Goods and Services Tax (GST). For this, the taxpayer is required to apply early.
The composition scheme was so far only for the commodities traders. The scheme could take up to five lakh rupees in the turnover, even if it was from the services. The total turnover of the scheme was Rs 1.5 crore. However many service providers were were kept out of this scheme. It included those people who did a great deal of business as well as service providers. Considering that the new composition scheme has been implemented. Under this, if the annual service turnover of Rs.50 lakhs for those who provide services such as plumbers, ticket booking agent, CA, AC maintenance etc., then they can come within the composition scheme. Assistant Commissioner Vinay Prakash Ojha said that the new composition scheme will have to apply in CMP-02 form. The taxpayer needs to provide information about the turnover.
Who are not covered under this scheme
Alcohol and petroleum products businessmen and casual or non-resident tax payers will be ineligible for the new composition scheme. Those who do business through e-commerce and who qualify for TCS under section 52, will not be able to join the scheme.
Dealers can not take tax from customer
Tax consultant Sumit Gupta says that businessmen coming to the new scheme will neither be able to make tax collection nor will they get ITCs of GST paid by them on the goods or services they receive. Taxpayers who take advantage of the scheme will have to pay the quarterly tax and the same returns in the year.
6 percent tax instead of 18
Suppose the turnover of a business is 1.25 crore. Out of this Rs 1 crore comes through sale and service account for Rs 25 lakhs, then the business did not come in the earlier composition scheme. Under the new scheme, turnover can be taken as a service provider by mentioning the 25 lakhs separately and filling the form. The taxpayer will have to pay six per cent tax on approval of this scheme.
