The Central Board of Indirect Taxes and Customs (CBIC) has issued an order clarifying that the intra-State suppliers of goods and services to whom the composition scheme is extended shall issue a tax invoice under the GST regime.
Earlier, the Board had notified composition scheme for supplier of services with a tax rate of 6% having annual turnover in preceding year upto Rs 50 lakhs.
As per the notification, the central tax, on the intra-State supply of goods or services or both shall be levied at the rate of 6 percent subject to the conditions.
Under section 31(3) of the Central Goods and Services Tax Act, 2017, a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply, and therefore any person not covered by the said clause has to issue a tax invoice.
The new order issued for removal of difficulties, clarified that the provisions of clause (c) of subsection (3) of section 31 of the said Act shall apply to a person paying tax under the extended composition scheme.To Read the full text of the Notification CLICK HERE