New in: Composition scheme under GST

The popular scheme of composition among small and medium taxpayers has been extended to GST as well.

Composition scheme under GST

Compositions scheme is a relief to small taxpayers who find it difficult to keep  and maintain detail accounting records.

Turnover limit:

The turnover limit fixed here is Rs. 75 lakhs (earlier 50 lakhs; changed 11 June 17) subject to changes by GST council. 

Rate:

Procedure : 

• A person needs to file GST CMP 01 within 30 days from the appointed day

• He needs to submits Stock Statement in GST CMP 03 within 60 days from submission of CMP 01

• The scheme is effective from the appointed day

• Submits GST CMP 02 within 60 days from the start of new financial year

• Taxable person who want to adopt for this scheme, also have to file CMP 02within 60 days from the start of financial year.

Eligibility:

·         1. The person should not be a Casual / Non-Resident Taxable Person.

·         Goods are not purchased from unregistered person. If purchased,

then tax is paid on them by the person applying for the scheme.

·      2.   On the appointed day, the transition stock does not include supplies

received from inter-state purchases or goods imported from outside

India.

·        3. The scheme is available only for supply of goods & restaurant

services. No other service provider can apply for the scheme.

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·         4.The person should not have inward supplies from E-Commerce Operator liable to collect

tax at source.

·         5. Person should not make inter-state supply of goods. Thus, inter-

state purchases of goods is allowed but inter-state sales is not

allowed.

·         6.Person has to mention “Composition Taxable Person, not eligible

to collect tax on supplies”, on its bill of supply.

·         7.Person has to mention “Composition Taxable Person” at principle

place of business.

·         8.The person should not be a manufacturer of notified goods.