- Post:CA Sundram Gupta
- May 25, 2020
COMPOSITION SCHEME: ELIGIBILITY, CATEGORIES AND TAX RATES
The Composition levy scheme is a very simple, hassle free compliance scheme for small taxpayers. It is a voluntary and optional scheme.
ELIGIBILITY TO OPT COMPOSITION SCHEME
- A registered taxable person, whose aggregate turnover in a preceding financial year does not exceed Rs.1.5 crores.
- However, the Turnover limit in a preceding financial year for the following states is Rs.75 lakhs: Arunachal Pradesh, Mizoram, Tripura, Manipur, Nagaland, Meghalaya, Sikkim and Uttarakhand.
PERSONS INELIGIBLE TO OPT FOR COMPOSITION SCHEME
- A Casual Taxable Person
- A non-resident Taxable person
- A supplier of services (except a person engaged in supply of restaurant service) supplying services of value in excess of Rs.5, 00,000/- or 10% of turnover in a State or Union territory in the preceding financial year, whichever is higher.
- A person engaged in providing inter-state supply of goods.
- A person engaged in supply of non-taxable goods
- A person engaged in supply of goods through an Electronic Commerce Operator (ECO) who is required to collect Tax at source under section 52 of the CGST Act.
- The manufacturer of the following goods:
- Ice cream and other edible ice, whether or not containing cocoa
- Pan masala
- Aerated Water, containing added sugar or other sweetening matter or flavoured [E.g. Pepsi, Coca-Cola, etc.]
- Tobacco and manufactured tobacco substitutes.
Persons already registered under GST
- The taxpayer has to file Form GST CMP-01 on the GST Common Portal for obtaining registration under the Composition scheme.
- Further, the details of stock, whether purchased from registered or unregistered person, held by him before he has opted to get registered under the composition scheme shall be furnished in FORM GST CMP-03.
Persons not registered under GST i.e. Obtaining Fresh Registration:
- A person who is applying for the fresh Registration under GST has to file FORM REG-01 and under Part B of the form he has to select the option of Section 10 (Registration as composite taxpayer).
RETURNS REQUIRED TO BE FILED:
A dealer is required to file a quarterly return GSTR-4 by 18th of the month after the end of the quarter. Also, an annual return GSTR-9A has to be filed by 31st December of next financial year.