CBIC Extends Last Date for availing benefit of Alternate Composition Scheme under GST

CBIC Extends Last Date for availing benefit of Alternate Composition Scheme under GST from 30 April 2019 to 31 July 2019

CBIC has issued Corrigendum dt. 1 July 2019 to Circular No. 97/16/2019 dt. 5 April 2019 to extend the last date for availing the benefit of Alternative Composition Scheme having tax at 6% (3% CGST +3% SGST) under GST, applicable for suppliers of Services or Mixed Suppliers having turnover upto 50 lacs,  from 30 April 2019 to 31 July 2019.

Corrigendum dt. 1 July 2019 to Circular No. 97/16/2019 dt. 5 April 2019

It may be noted that Alternate Composition Scheme has been made available to those suppliers of Services or Mixed Suppliers, who were not eligible for the primary composition scheme, vide notification No. 02/2019-Central Tax (Rate) dt. 07.03.2019, as amended by notification No. 09/2019-Central Tax (Rate) dt. 29.03.2019. 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 turn-over. Further, 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 as 30.04.2019 vide Circular No. 97/16/2019-GST dt. 05.04.2019.

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 dt. 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. This step has been taken by the GST Council to encourage the eligible taxpayers to avail the benefit of the Alternate Composition Scheme by applying on or before 31.07.2019.

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