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    Composition Under GST

    Uploaded by

    SHAMBHU DAYAL
    This document summarizes the composition tax scheme in India. [1] It is a simpler method for small traders and manufacturers to pay taxes with fewer returns required. [2] Eligibility is limited to registered persons with aggregate annual turnover under Rs. 50-75 lakhs depending on the state, dealing only in goods. [3] Restrictions apply for certain supplies and manufacturers, and the scheme must be discontinued if turnover exceeds the limit. Compliance involves filing quarterly and annual returns and paying tax quarterly at concessional rates of 1-5% of turnover depending on the business.

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    Composition Under GST

    Uploaded by

    SHAMBHU DAYAL
    26 views12 pages
    This document summarizes the composition tax scheme in India. [1] It is a simpler method for small traders and manufacturers to pay taxes with fewer returns required. [2] Eligibility is limited to registered persons with aggregate annual turnover under Rs. 50-75 lakhs depending on the state, dealing only in goods. [3] Restrictions apply for certain supplies and manufacturers, and the scheme must be discontinued if turnover exceeds the limit. Compliance involves filing quarterly and annual returns and paying tax quarterly at concessional rates of 1-5% of turnover depending on the business.

    Original Description:

    COMPOSITION LAW AS PER GST 2017 ACT

    Original Title

    COMPOSITION UNDER GST

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    This document summarizes the composition tax scheme in India. [1] It is a simpler method for small traders and manufacturers to pay taxes with fewer returns required. [2] Eligibility is limited to registered persons with aggregate annual turnover under Rs. 50-75 lakhs depending on the state, dealing only in goods. [3] Restrictions apply for certain supplies and manufacturers, and the scheme must be discontinued if turnover exceeds the limit. Compliance involves filing quarterly and annual returns and paying tax quarterly at concessional rates of 1-5% of turnover depending on the business.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    26 views12 pages

    Composition Under GST

    Uploaded by

    SHAMBHU DAYAL
    This document summarizes the composition tax scheme in India. [1] It is a simpler method for small traders and manufacturers to pay taxes with fewer returns required. [2] Eligibility is limited to registered persons with aggregate annual turnover under Rs. 50-75 lakhs depending on the state, dealing only in goods. [3] Restrictions apply for certain supplies and manufacturers, and the scheme must be discontinued if turnover exceeds the limit. Compliance involves filing quarterly and annual returns and paying tax quarterly at concessional rates of 1-5% of turnover depending on the business.

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    COMPOSITION TAX

    OR SCHEME
    INTRODUCTION

    It is a simpler method of paying taxes.

    Main objective is to provide relief to the small TRADER


    AND/OR MANUFACTURERS from maintaining detailed accounts
    and Records.

    Compliance with LAW is less as compared to Normal Provision as


    there are 5 Returns Per annum instead of 37 Returns

    Limited tax liability


    ELIGIBILITY
    The Person must be Registered person.

    Dealing only in goods, not applicable to services


    except restaurant services.

    All Registered Person under the Same PAN


    should avail this scheme

    Aggregate Turnover in Preceding Financial year


    should not exceed the Rs 50 or 75 lacks
    In its meeting held on 18th June, 2017, the GST Council has recommended that the
    turnover limit for Composition Levy for CGST and SGST purposes shall be Rs.50 lacks in
    respect of the following Special Category States namely:

    Arunachal Pradesh, Sikkim , Tripura

    Assam , Meghalaya Himachal Pradesh

    Manipur , Mizoram,

    3. The Council has also recommended that in case of Uttarakhand, the turnover limit for
    Composition Levy for CGST and SGST purposes will be Rs.75 lacks.

    4. For the State of Jammu & Kashmir the turnover limit for the Composition levywill be
    decided in due course.
    RESTRICTIONS
    This scheme shall not applicable to:

    Supply of Services except Restaurant.

    Supply of goods not chargeable to tax

    Interstate outward supplies of goods.

    Supply of goods through electronic commerce operator who is Required to collect tax at
    source

    Manufacturer of notified goods

    If during F.Y the Aggregate turnover exceeds Rs 50 lacks, no composition from the following
    day.

    Tax and penalty applicable if scheme is wrongly availed


    He is neither a casual taxable person or non- resident taxable
    person

    Inward supply of goods received from unregistered person held


    by him on preceding date from which he opts for the same

    Goods on the appointed day shall not be purchase from


    Unregistered person , in interstate course, imported, Received
    from his Branch or from his agent or Principal outside the state.

    He shall mention the words “composition taxable person”, at


    every prominent places & not eligible to collect the tax.
    Need to File the Return Quarterly & Annually.

    Taxes shall be paid quarterly

    Shall file intimation within 30 days of appointed day & shall


    issue the Bill of supply instead Taxable Invoice after the
    aforesaid date then effective date will be appointed day

    Within 60 days from commencement of Relevant F.Y person


    has to filed a FORM GST ITC-3 Statement then effective date
    will be beginning of F.Y
    AGGREGATE TURNOVER
    Means the aggregate value of supply & shall include :

    All Taxable supplies

    All exempt supplies

    All export of Goods/services

    But shall not include:

    Taxes under the CGST,SGST,IGST and value of inward supplies

    And Taxes paid under the Reverse charge u/s 9 (3).

    Of a person having the same PAN and shall be computed on all India basis.
    FEATURES

    This scheme is optional

    To avail this scheme Tax payer should inform the government within Prescribed Time

    Taxes to be paid of the %age of the Turnover

    Restaurant- 5%

    Manufacturer- 2%

    Other supplies- 1%

    No Restriction on Interstate Inward supply

    Tax would not be charged/collected from Customer

    Input tax would not be admissible


    COMPLIANCE TO LAW
    INVOICE:- Shall issue a bill of supply containing
    such particulars as may be prescribed

    Tax payment should be quarterly

    Quarterly Return within 18 days from the end of


    Relevant quarter

    Annual Return on 31st December following the


    Financial Year.
    Taxes and Penalty
    If person has wrongly availed the benefit of this
    scheme

    Tax liability generates as per normal provisions

    Penalty equal to tax liability

    Show cause notice to be given to dealer.


    Thank

    You

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