The Central Board of Indirect Taxes & Customs (“CBIC”) vide its Order No. 01/2019 – Central Tax dated February 01, 2019 supersedes Removal of Difficulties Order No. 1/2017 – Central Tax dated October 13, 2017 in view of the amendment to Section 10 of the CGST Act, 2017 (regarding allowing registered persons opting for Composition Scheme to supply services up to a limit) w.e.f. February 01, 2019. It was clarified that the value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not form part for determining the eligibility for composition scheme under second proviso to section 10(1) of the CGST Act, 2017 and in computing aggregate turnover in order to determine eligibility for composition scheme.
The order can be accessed at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/ROD1_2019_CT.pdf;jsessionid=1449987F043419B7D63479A76F543D6A