‘ Don’t include all services in composition scheme’

New Delhi, Jan. 11: A governmentappointed panel has recommended against inclusion of all services, barring restaurants, under the ambit of composition scheme in the GST regime.

The 10- member Law Review Committee, comprising representatives from both the Centre and states, also suggested that the limit of services provided by a composition dealer should be limited to 10 per cent of the taxable turnover or ` 5 lakh, whichever is higher.

The panel suggested a separate composition rate not exceeding 18 per cent for services supplied by composition dealer by way of job work, sources said.

The recommendations by the committee are based on the suggestions made by the advisory panel, comprising representatives from trade and industry, which wanted composition scheme to be extended to all service providers.

Over 15 lakh businesses opted for composition scheme, which allows them to pay taxes at a concessional rate and makes compliance easy under the GST.

Under the scheme, traders and manufacturers can pay taxes at a concessional rate of 1 per cent while restaurants pay 5 per cent GST.

The composition scheme is open for manufacturers, restaurant owners and traders whose turnover does not exceed ` 1.5 crore.

THE RECOMMENDATIONS by the committee are based on the suggestions made by the advisory panel which wanted composition scheme for all