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TMI BlogGST Composition SchemeX X X X Extracts X X X X X X X X Extracts X X X X ..... GST Composition Scheme - By: - Dinesh Kumar - Goods and Services Tax - GST - Dated:- 20-6-2019 - - Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. Under this scheme, a taxpayer would be required to pay tax on the turnover based on the prescribed percentage as the tax rate is co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mparatively low than those prescribed for normal taxpayers. The threshold limit of composition scheme extended from INR 1 crore to INR 1.5 crore which shall also include 10% provision of normal taxpayer annual turnover within the composition scheme if in case the given 10% is provided as the service. The illuminating feature of this scheme is that the business or person who has opted to pay tax un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der this scheme can pay tax at a flat % of turnovers every quarter, instead of paying tax at normal rate every month. Who is eligible for Composition scheme? Small traders and manufacturers having a turnover of INR 1.5 crore paying 1% GST Service providers and suppliers of both goods and services with a turnover of INR 50 lakh paying 6% GST. Who is not eligible for Composition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme? Services supplier other than restaurant related services Ice cream, pan masala, or tobacco manufacturers inter-state supplies individuals A non-resident taxable person or a casual taxable person Businesses supplying goods through an e-commerce operator Advantages of registration under composition scheme: Limited tax liability Least involvement of complian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces High liquidity as taxes are at a lower cost Disadvantages of registration under composition scheme: A dealer is barred from carrying out inter-state transactions which result in the limited territory of business. Composition dealers will have no input tax credit E-commerce supply portal cannot be taken in operation to supply exempt goods or goods. If a composition sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heme taxpayer is not furnishing the returns for two consecutive tax periods and a regular taxpayer who has not filed returns for a consecutive period of two months would not be allowed to generate e-way bill. It would act as an incentive for small and upcoming businesses to accept the composition scheme without any fear of compliance resulting in relieving taxpayers from the burden of filing a det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed and hulking return. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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