Answer

1. F

   Facts

   Service providers and mixed suppliers with turnover up to Rs 50 lakh can opt for a special scheme at 6 percent (3 percent CGST plus 3 percent SGST). It has conditions similar to the main composition scheme. It is opted through the same CMP-02.

2. P

   Provisions and law

   • Notification 2/2019-CT(R)Optional scheme for suppliers of services or mixed supplies with turnover up to Rs 50 lakh at 6 percent
   • Rule 3, CGST Rules 2017Intimation to opt in CMP-02 before the start of the financial year; ITC-03 within 60 days for ITC on stock
3. A

   Analysis

   Example: a coaching centre with Rs 35 lakh fees pays 6 percent, about Rs 2.1 lakh a year, instead of 18 percent tax on taxable services with ITC. If your services are below Rs 20 lakh and you have no inter-State supplies, you may not need registration at all. You cannot supply services to clients in other States under this scheme, so check your client base.

4. C

   Conclusion

   1. 1Check last year's turnover is up to Rs 50 lakh
   2. 2Check you have no inter-State outward supplies
   3. 3Compare 6 percent with regular tax after ITC
   4. 4File CMP-02 choosing the services scheme before 1 April

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.