GST - Whether a Works contractor having turnover below ₹ 75 lacs is eligible to avail benefit of composition scheme? What happened in case of other service providers? Can a restaurant server provider (Dhaba wala) is allowed under this scheme.

Section - 10 - Composition levy.

Schedule 2: - ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES

THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

Rule - 5 - Conditions and restrictions for composition levy

Central Goods and Services Tax Rules, 2017

No, in General All the service provider are not eligible to avail the benefit of composition scheme.

Exception:

As per the provisions of Section 10(1)(b), only the specified service provider i.e. Restaurant Service provider (Dhaba Wala) is eligible to avail the benefit of composition. Clause (b) of para 6 of the Second Schedule states that:

"(b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration."

In case of a Works Contractor:

A Works contractor, who is considered as a service provider, is not eligible to avail the benefit of composition scheme.

Dated: 19-7-2017