Union Finance Minister Nirmala Sitharaman has today given three months extension to service providers which include mutual fund distributors to opt for lower GST rates under composition scheme.
If you earn up to Rs.50 lakh and do not have any business with AMCs outside the Maharashtra, you are eligible to avail benefits of lower rates under the composition scheme.
With the extension, such a distributor will have to opt for the composition scheme on GST portal before June 30, 2020.
Under the scheme, service providers earning up to Rs.50 lakh could pay GST rate of 6% instead of 18% with effect from April 1, 2019. However, these service providers cannot avail input credits if they opt for the composition scheme. Also, they will have to pay taxes quarterly but file returns annually.
Another key announcement for MF distributors is relaxation in GST compliance. You can file your GST returns for March, April, May and composition returns till June 30, 2020.
In addition, FM has extended deadline to link PAN and Aadhaar from March 31, 2020 to June 30, 2020.
