The committee appointed by Government of India has recommended against including all services except for restaurants under the composite scheme of GST (Good and Services Tax), reported PTI.

The law-review committee comprising of 10 members from the Centre as well as states have also suggested limiting the services provided by composite dealers to 10% of taxable turnover or Rs. 5 lakhs, whichever is higher.

A composite dealer is a small taxpayer who can opt for the composite GST scheme at a fixed rate of turnover. It can be opted by any taxpayer whose turnover is less than Rs. 1.5 crore (as per Nov 2017 revision). The limit is Rs. 75 lakhs (as per Nov 2017 revision) in case of Himachal Pradesh and north-eastern states.

The panel has suggested a composition rate not exceeding 18% for services of composite dealers by way of job work.

The recommendations were based on the suggestions of the advisory panel that comprises of representatives from trade and industry and wants the composition scheme to be extended to all service providers.

Over 15 lakh businesses have opted for composition scheme allowing them to pay taxes at a concessional rate and making compliance easy under the GST. Under the composite scheme, traders and manufacturers can pay taxes at a concessional rate of 1 percent while restaurants pay 5 percent GST.

It is also decided to amend the GST law to raise the statutory threshold to Rs 2 crore from Rs. 1.5 crore. The law review committee meanwhile suggests that GST Council should limit the composition scheme threshold limit at Rs 1.5 crore for the time being.

It also suggested to not extend the composition scheme to businesses which are engaged in the inter-state supply of goods and services.

The recommendations of the law review committee are likely to be taken up for consideration in the next meeting of the GST Council on January 18. The council comprises of members representing the Centre as well as states.