You can now update your status on GST Composition Scheme by sending an email to amfigst@camsonline.com with details of the GST number. You will also have to attach scanned copies of the confirmation receipt that you have opted for GST Composition Scheme.
Since CAMS will update all AMCs and RTAs about your Composition Scheme status, you are no longer required to inform AMCs and R&T agents separately.
In addition, MF distributors are required to raise a new invoice called ‘bill of supply’ from April 1, 2019 to avail of the benefit of lower GST rates under Composition Scheme. While Karvy Fintech has started raising such bills for IFAs, CAMS will start this service soon. Currently, Karvy Fintech provides an indicative bill of supply that can be verified and submitted online.
Distributors who earn up to Rs.50 lakh and do not have any business with AMCs outside Maharashtra are eligible to pay lower GST rates under Composition Scheme. It allows service providers earning up to Rs.50 lakh to pay GST rate of 6% instead of 18% with effect from April 1, 2019. However, these service providers cannot avail of input credits if they opt for Composition Scheme. Also, they will have to pay taxes quarterly but file returns annually.
Currently, only a fraction of Maharashtra distributors who do not have business with AMCs beyond the state and earn between Rs.20 lakh and Rs.50 lakh can avail of the benefits of Composition Scheme.
