×
Headlines

GST: Govt excludes Certain Exempt Services for determining Eligibility for Composition Scheme [Read Circular]

GST Composition Scheme

The Central Board of Indirect Taxes and Customs ( CBIC ) has clarified that the value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account – (i) for determining the eligibility for composition scheme under second proviso to sub-section (1) of section 10; (ii) in computing aggregate turnover in order to determine eligibility for composition scheme under GST.

Earlier in 2017, the Government, vide Removal of Difficulties Order No. 01/2017 – Central Tax, dated October 13, 2017, had clarified that if a person supplies goods and/or services referred to in clause (b) of paragraph 6 of Schedule II of the said Act and also supplies any exempt services including services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, the said person shall not be ineligible for the composition scheme under section 10 subject to the fulfillment of all other conditions. It was further clarified that in computing his aggregate turnover in order to determine his eligibility for composition scheme, the value of supply of any exempt services including services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account.

To Read the full text of the Circular CLICK HERE
Top