There are two major amendment in GST amendment act 2018 with respect to composition scheme, Earlier the threshold limit of turnover for the taxpayer to be eligible for the composition scheme is INR 1 Crore.
However, after amendment with effect from 01st Feb 2019 registered person having turnover up to INR 1.5 crore can opt for composition scheme.
Before 1st February 2019, Persons engaged in supply of services (other than restaurant service) are not eligible for the composition scheme or in other words person opted for composition scheme was not allowed to make supply of services.
With effect from 1st February 2019, Person opting for composition scheme is allowed to supply services other than services referred in para 6 (b) of schedule II. i.e. Restaurant services.
Total value of supply of services should not exceed higher of the following –
The same can be understood with the help of following table:
|Nature of business||Before 1st Feb 2019||After 1st Feb 2019|
|Person engaged in supply of goods||Threshold limit of turnover was 1 crore||Threshold limit of turnover incresed to 1.5 crore|
|Person engaged in supply of services||Not eligable for composition scheme other than restaurent services||Service provider are eligible for composition scheme subject to certain conditions|