Composition Scheme of GST for Service Provider

By | March 2, 2019
(Last Updated On: March 2, 2019)

GST Com

Composition Scheme of GST for Service Provider

If the person Supply Goods and specified Service then , GST Composition Scheme Rates are different for

i) Manufacturer,

ii) Persons engaged in making supplies referred to in clause (b)of paragraph 6 of Schedule II

iii)  other suppliers,

GST Composition Scheme is available for Service providers ( Who supply Goods and Services also) from 01.02.2019. but it has a limit. which says

 a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding

  • ten per cent of turnover in a State or Union territory in the preceding financial year or
  • five lakh rupees,
  • whichever is higher.

Changes in GST Composition Scheme from 01.02.2019

New GST Composition Scheme for Service Providers

In 32nd GST Council Meeting it was proposed to introduce new GST Composition Scheme For Service Provider with GST Rate of 6 %. And filing One annual GST Return

Effective Date For Composition Scheme For Service Provider


In 32nd GST Council Meeting it was proposed that amendment for Composition scheme for Service Sector shall be effective from 01 April 2019.

Turnover Limit under Composition Scheme Service Provider

Turnover Limit under Composition scheme for Service provider will be Rs 50 Lac.

This new turnover limit is defined by GST Council. Service provider who’s Turnover was below Rs 50 Lakh can apply for Composition Scheme Service Provider.

This turnover is applicable for supplier of services and mixed supplier of services.

Example : 1. M/s ABC Services having turnover Rs. 48 lakh For FY 2018-19 can apply for composition scheme.

Example : 2 M/s BCD Services having turnover Rs. 51 Lakh for FY 2018-19 not eligible to apply for scheme.

Applicability of GST Composition Scheme for Service Providers

The said scheme shall be applicable to both service providers as well as suppliers of goods and services, who are not eligible for the presently available composition scheme for goods.

GST Return Filing For Composition Scheme For Service Provider

Making GST Compliance under composition scheme, GST Council mentioned that under scheme there will be only One GST Annual Return for Composition Scheme For Service Provider. And Quarterly payment with declarations.

  • One Annual Return
  • Quarterly GST Payment of GST
  • Quarterly Declaration

GST Rate On Composition Scheme For Service Provider

GST Rate on Composition scheme for service providers will be 6 %. It will have break up in CGST & SGST (3% CGST + 3% SGST ). This will be applicable for supplier of services and Mixed supplier of services. GST Council had decided to give benefit of composition scheme to service suppliers.

  • Total GST Rate 6 % ( i.e 3% CGST + 3% SGST )

Download Press Release for Composition Scheme For Service Provider

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Changes in GST Composition Scheme from 01.02.2019

GST Composition Scheme : Free Study Material

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