Composition scheme made for small dealer, manufacturer, service provider. The purpose of this scheme is to simplify the compliance for small dealer because its difficult for small business man to comply with the GST Provision.<\/p>\n\n\n\n
Who is eligible for composition scheme Such above person can opt for composition scheme only if his aggregate turnover not exceeding 75 lakh in previous year. In case turnover of the registered person exceeds the limit of 75 lakh then composition scheme shall automatically lapsed from the day on which limit exceeds. Aggregate turnover means value of all supply<\/strong><\/p>\n\n\n\n Tax rate under Composition scheme Input tax credit under composition scheme Merit of composition scheme Demerit of composition scheme Due date of filing of return under composition scheme<\/p>\n\n\n\n Switch over from composition to normal and vice-versa<\/strong> Composition scheme made for small dealer, manufacturer, service provider. The purpose of this scheme is to simplify the compliance for small dealer because its difficult for small business man to comply with the GST Provision. Who is eligible for composition scheme A registered person may opt composition scheme if He is not engaged in supply […]<\/p>\n","protected":false},"author":1,"featured_media":3327,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[68],"tags":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/posts\/3325"}],"collection":[{"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/comments?post=3325"}],"version-history":[{"count":0,"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/posts\/3325\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/media\/3327"}],"wp:attachment":[{"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/media?parent=3325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/categories?post=3325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/companybanao.com\/wp-json\/wp\/v2\/tags?post=3325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/strong> A registered person may opt composition scheme if<\/p>\n\n\n\n
\nFurther if person registered under composition scheme, having single PAN, then he shall have to take registration under composition scheme for other state<\/p>\n\n\n\n
Registered person opting for composition scheme shall not collect tax on supplies made by him and also not take credit of input tax.
Registered person opting for composition scheme shall display on board that he is COMPOSITION TAXABLE PERSON.
Taxpayer shall not be casual taxable person
Taxpayer shall not be non-resident
If person opting composition scheme by making false declaration then he shall be liable for penalty under section 73 and 74 of the Act.<\/p>\n\n\n\n
<\/p>\n\n\n\nCategories<\/td> CGST<\/td> SGST<\/td> Total<\/td><\/tr> Manufacturer<\/td> 1%<\/td> 1%<\/td> 2%<\/td><\/tr> Supplier<\/td> 0.50%<\/td> 0.50%<\/td> 1.00%<\/td><\/tr> Restaurant<\/td> 2.50%<\/td> 2.50%<\/td> 5.00%<\/td><\/tr><\/tbody><\/table>\n\n\n\n
<\/strong> Registered person shall not<\/p>\n\n\n\n
Payment of tax at lower rate
Quarterly return filing instead of monthly<\/p>\n\n\n\n
<\/strong> Person registered under composition scheme shall not<\/p>\n\n\n\n
\nReturn filing under composition scheme
\nPerson registered under composition scheme shall file return in GSTR-4 in quarterly basis and annual return in GSTR-9A<\/li><\/ol>\n\n\n\nFrequency<\/td> Return type<\/td> Due date<\/td><\/tr> Quarterly<\/td> GSTR-4<\/td> 18th of month succeeding of qtr<\/td><\/tr> Annual return<\/td> GSTR-9A<\/td> 31st of Dec<\/td><\/tr><\/tbody><\/table>\n\n\n\n
From normal to composition scheme<\/strong>
In case dealer already registered under GST and wishing to opt composition scheme then he shall file and application in FORM GST CMP-02 prior to commencement of year and also file FORM GST ITC-3 within 60 days of commencement of financial year.
Taxpayer has to pay tax on equal to amount of input tax credit taken on stock held on the day of switch over<\/p>\n","protected":false},"excerpt":{"rendered":"