Parikh is a practising Company Secretary at Mumbai. His gross fee receipts for the financial year 2018-19 was ₹ 28 lakhs. He estimated his gross receipts at ₹ 32 lakhs for the financial year 2019-20. He wants to avail co

Applicability of Composition Scheme The new composition scheme, introduced vide Notification No.2/2019 dated 7.03.2019, provides for concessional rate of tax particularly to the suppliers of services. It is applicable to suppliers of services who have to pay tax at a rate of 6% (3% CGST and 3% SGST / 6% IGST). The basic condition for its applicability is that the annual turnover of the person in preceding financial year must not have exceeded ₹ 50 lakhs. In the present case, since Mr. Parikh has estimated turnover of ₹ 32 lakhs in the year 2019-20 which is below the minimum threshold of ₹ 50 lakhs, he can avail the new composition scheme for supply of service in the F.Y. 2020-21. The registered person opting for new composition scheme is not eligible to avail input tax credit nor shall he be eligible to charge output tax from its recipients of supply. The registered person shall issue bill of supply instead of tax invoice.