Recipients can Claim ITC on Ex-Works Contracts: GST Council

The GST Council has proposed an amendment in the category of registered persons for taxpayers opting for the composition levy (Form CMP-02). This amendment seeks to modify the conditions under which taxpayers can avail of the composition scheme, which allows businesses to pay tax based on their turnover instead of on the actual value of goods and services. The change is expected to ease compliance for smaller businesses and streamline their tax obligations under the GST regime. The amendment will ensure that businesses with a smaller turnover can continue to benefit from the composition scheme, thereby reducing the overall tax burden and administrative costs. This proposal aligns with the government’s aim to make the GST system more accessible to small businesses.