Composition Scheme under GST Regime 1-A registered taxable person having aggregate turnover in a preceding financial year upto Rs.50 Lakh can opt for composition Scheme. 2-The Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore rupees, as may be recommended by the Council. 3.Prescribed rate of tax under Composition Scheme: For Manufacturer : 2% (1%CGST+1%SGST) For Restaurant Assessee (As prescribed in Schedule II): 5% (2.5% CGST+ 2.5% SGST) For Others : 1% (0.5% CGST+0.5% SGST) 4. Composition dealers cannot enter into credit chain. 5. Tax cannot be collected from the recipient on supplies made by the composition dealer. 6. The option availed of by a registered person under composition scheme shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds Rs.50 lakhs . 7. The registered person shall not be eligible to opt composition scheme: (a) Service Provider ( other than restaurant services). (b) Person making inter state outward supplies. (c) Person making exempt supplies. (d) Electronic commerce operator . (e) Notified Manufacturers. 8. In this scheme of GST benefit to supplier from current composition scheme under different state VAT law is that now composition dealer in GST regime is allowed to do Inter State Inward supplies(i.e. inter state purchase) which was not available in current regime. 9. Composition scheme to be adopted uniformly by all the registered taxable persons having the same PAN. HITESH DAYANI CHARTERED ACCOUNTANTS
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