Kerala State Goods and Services Tax (Third Removal of Difficulties) Order, 2019 - G.O.(P) No.100/2019/TAXES - S.R.O. No. 457/2019 - Kerala SGST

GOVERNMENT OF KERALA Taxes (B) Department ORDER G.O.(P) No.100/2019/TAXES. Dated, Thiruvananthapuram, 3rd July, 2019 18th Mithunam, 1194 S. R. O. No. 457/2019 WHEREAS, sub-section (1) of section 10 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) (hereafter in this Order referred to as the said Act) provides that- (i) a registered person engaged in the supply of services, other than supply of service referred to in clause (b) of paragraph 6 of Schedule II to the said Act, may opt for the scheme under the said sub-section; (ii) a person who opts for the said scheme may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II to the said Act), of value not exceeding ten per cent. of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher; AND WHEREAS, clause (a) of sub-section (2) of section 10 of the said Act provides that the registered person shall be eligible to opt under sub-section (1), if, save as otherwise provided in sub-section (1), he is not engaged in the supply of services; AND WHEREAS, rendering of services as part of the savings and investment practice of business, by way of extending deposits, loans or advances, in so far as the consideration is represented by way of interest or discount, is resulting in their ineligibility for the aforesaid scheme, causing hardships to a lot of small businesses and because of that, certain difficulties have arisen in giving effect to the provisions of section 10; NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017), the Government of Kerala, on recommendations of the Council, hereby makes the following Order, namely: 1. Short title . This Order may be called the Kerala State Goods and Services Tax (Third Removal of Difficulties) Order, 2019. 2. For the removal of difficulties, it is hereby 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. By order of the Governor, VENUGOPAL, P., Secretary to Government Explanatory Note (This does not form part of the order, but is intended to indicate its general purport.) Rendering of services as part of the savings and investment practice of business, by way of extending deposits, loans or advances, in so far as the consideration is represented by way of interest or discount, is resulting in their ineligibility for the composition scheme, causes hardships to a lot of small businesses and because of that, certain difficulties have arisen in giving effect to the provisions of section 10 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017). Hence, the Government of Kerala, on the recommendations of the Goods and Services Tax Council, have decided to clarify that the value of supply of exempted 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 for determining the eligibility for the composition scheme under the second proviso to sub-section (1) of section 10 and in computing aggregate turnover in order to determine the eligibility for the composition scheme. The order is intended to achieve the above object.