Goods And Services Tax

Composition Scheme For Mixed Supplies

April 24, 2019
Team Taxmount

In this article, We talk about  Notification No.21 /2019 – Central Tax Dated 23.04.2019, Notification No. 2/2019-Central Tax (Rate) Dated 07.03.2019 and Notification No. 9/2019-Central Tax (Rate) Dated 29.03.2019

Much Awaited Composition  Scheme for taxpayers who is providing mixed supplies i.e Supply of Goods as well as Supply of Service. Subject to Certain Condition.

Applicabilty:

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

Conditions:

Notification No. 2/2019-Central Tax (Rate) Dated 07.03.2019

  1. Registered Person- (i) whose aggregate turnover in the preceding financial year was fifty lakh rupees or below (ii) who is not eligible to pay tax under sub-section (1) of section 10 of the said Act (Normal Composition Scheme). (iii) who is not engaged in making any supply which is not leviable to tax under the said Act. (iv) who is not engaged in making any inter-State outward supply. (v) who is neither a casual taxable person nor a non-resident taxable person. (vi) who is not engaged in making any supply through an electronic commerce operator who is required to collect tax at source under section 52. (vii) who is not engaged in making supplies of the Ice cream and other edible ice, whether or not containing cocoa, Pan masala and All goods, i.e. Tobacco and manufactured tobacco substitutes.
  2. Where more than one registered persons are having the same Permanent Account Number, issued under the Income Tax Act, 1961(43 of 1961), tax on supplies by all such registered persons is paid at the rate 6% .
  3. The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
  4. The registered person shall issue a bill of supply Only.
  5. The registered person shall mention the following words at the top of the bill of supply, namely: – ‘taxable person paying tax in terms ofnotification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies.
  6. The registered person opting to pay Tax @ 6% i.e Central Tax @ 3% and State/Union Tax @ 3%
  7. The Registered Person is liable to pay tax under sub-section (3) or, as the case may be, under sub-section (4) of section 9 of said Act at the applicable rates. i.e (RCM).

Notification No. 9/2019-Central Tax (Rate) Dated 29.03.2019

8. The Registered Person shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on capital goods as if the supply made under this notification attracts the provisions of section 18(4) of the said Act and the rules made there-under and after payment of such amount, the balance of input tax credit, if any, lying in his electronic credit ledger shall lapse.”; i.e. Reversal Of ITC/Payment of Tax on Stock-in-hand.

GST Returns and Payment Of Tax

Notification No.21 /2019 – Central Tax Dated 23.04.2019

  1.  The Registered persons shall furnish a statement, every quarter or, as the case may be, part thereof containing the details of payment of self-assessed tax in FORM GST CMP-08 of the Central Goods and Services Tax Rules, 2017, till the 18th day of the month succeeding such quarter.
  2. The Registered persons shall furnish a return for every financial year or, as the case may be, part thereof in FORM GSTR-4 of the Central Goods and Services Tax Rules, 2017, on or before the 30th day of April following the end of such financial year.
  3. The registered persons paying tax by availing the benefit of the said notification, in respect of the period for which he has availed the said benefit, shall be deemed to have complied with the provisions of section 37 and section 39 of the said Act if they have furnished FORM GST CMP-08 and FORM GSTR-4.

In Simple Words

In Simple Words, Any Registered Person Providing Mixed Supplies (Goods & Service) may Opt to Pay Tax @ 6% in Composition Scheme Subject to Certain Condition like Issue bill of Supply, Do not Collect tax, preceding financial year was fifty lakh rupees or below, not engaged in making any inter-State outward supply etc. He is require to make payment Quartely in Form GST CMP-08 till the 18th Day of the Succeeding Quarter and furnish a return for every financial year in FORM GSTR-4 on or before the 30th day of April following the end of such financial year.