GST Composition Scheme Registration
With changes in indirect taxation every tax payer is required to do compliance’s such as monthly payment of taxes , timely filing of statutory GST returns , maintaining prescribed record as per law. To make the compliance part easier for business persons a Composition scheme under Sec 8 is given, Under which c a taxpayer is eligible to pay taxes to government at certain percentage of his turnover and not allowed to take input tax credit. With a aim of one nation one tax this composition scheme enables less compliance’s to business as compared to earlier laws. Dealer shall electronically file an intimation in FORM GST CMP-01, duly signed, on the Common Portal, either directly or through a Facilitation Center.
Eligibility for GST Composition Scheme Registration- Thresholds limit of aggregate Turnover Rs.50 Lac
- Scheme to be opted for all Units under same PAN
- Tax would be paid not less than 1%
- Tax would not be charged and collected from Customer
- Not entitled to take input tax credit
Key Highlights of GST composition levy
Tax Rate
Rate not more than 1% for manufacturer, 2.5% for restaurant sector and 0.5% for other suppliers of turnover.
Applies to Sales with in State
Local suppliers, i.e., those who supply within a state can only take advantage of this scheme. Inter-state suppliers will come under regular GST laws.
Quarterly Return
GSTR-4 has been prescribed by the government as a tax return form to be filed by a dealer under Composition Scheme.
Penalty
Where taxable person is found not eligible for scheme in that case officer may ask for penalty then the tax authorities can impose a penalty equal to differential tax along with penalty.
Turnover Limit
If the turnover of assessee opting composition scheme exceeds Rs.50 Lakhs during the year, he will be shifted to normal Scheme automatically.