Composition Scheme after Amendment(Supplying Goods as well as Service

[Prem Choudhary]

Dear Exper

We have heard that amended in Composition scheme for availing scheme for both supplier -goods or Services or both supplier.

However we have not find condition for availing scheme if supplier has supplier both goods and services.

please advice..

AI Summary

Composition scheme eligibility: service value limited relative to prior turnover or a minimum floor, affecting tax and ITC consequences.
Amendments permit composition registration for taxpayers with turnover below the prescribed threshold, but impose a limit on supplies of services by composition taxpayers: service value in the preceding year must not exceed the higher of a percentage of prior-year turnover or a monetary floor. Exceeding that service-value limit risks assessment for differential tax, interest and penalty. The scheme eliminates input tax credit for composition dealers and simplifies compliance, but may be financially disadvantageous for mixed suppliers such as those combining goods sales with catering or courier services.