With a view to remove difficulties in implementing the provisions of composition scheme, the Government, extended its benefit to the persons providing exempted services under the new Goods and Services Tax (GST) regime.
An order passed on Friday in this regard, clarified that “if a person supplies goods and/or services referred to in clause (b) of paragraph 6 of Schedule II of the said Actand 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 personshall not be ineligible for the composition scheme under section 10 subject to the fulfillment of all other conditions specified therein.”
It further clarified that in computing aggregate turnover in order to determine his eligibility for composition scheme in the above case, 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.
Read the full text of the Order below.
