COMPOSITION LEVY — (Sec 10)
Small taxable person supplying goods upto 75 lakhs per annum are eligible for composition scheme. They have to pay GST @ 2% in case of manufacturing & 1% in case of trader & 5% in case of restaurant service. Notified suppliers like manufacturer of Ice Cream, edible ice, Panmasala, Tobacco Products cannot opt this scheme.
1. No Interstate outward supply.
2. Shall not collect tax.
3. Not entitled to Input Credit.
4. Issue bill of supply & Not tax invoice.
5. No Input tax credit to those who purchase from him
6. Not engaged in Electronic Commerce.
7. Not be engaged in Supply of Services except Food & Drink Service.
8. Not a Casual Taxable person.
9. Not a Non Resident Taxable Person.
10. Write the Words “composition taxable person” on every notice, sign board etc.
11. Write the words “composition taxable person, not eligible to collect tax” in every bill of supply.
12. There should be no stock of interstate purchased items as on 01.07.17.
13. There should be no stock of purchase from unregistered dealer as on 01 07.17.
14. All registered persons having the same PAN have to opt for composition scheme. If one registered person opts for normal scheme, others become ineligible for composition scheme.
15. Any intimation or withdrawal to one unit is applicable to other units of the same PAN.
16. Option lapses if aggregate turnover exceeds Rs.75 lakhs.
17. Pay tax at regular rate for purchase from unregistered dealers.
18. Shall file quarterly return in GSTR4 on 18th of the month next to quarter
19. File GSTCMP-01 during 2017-18 before 17.8.17 or extended period for option, in this period is from 1.7. 17 till filing date the registered person shall collect any tax from the appointed day.
20. From 2018-19 onwards file GSTCMP — 02 before the starting of the Financial year.
21. File GSTCMP — 04 for withdrawal & GST1TC -01 for input in stock.
22. No need of renewal every year, once availed composition scheme can continue till crosses 75 lakhs.
23. He is eligible only if he is not engaged in making any supply of goods which are not leviable to tax under this Act. Sec 10.2..b
24. Where any registered person who has availed of ITC opts composition scheme shall pay an amount by way of debit in the electronic credit/ cash ledger equivalent to the credit of in respect of inputs held in stock in from GSTITC3.sec 18.4, rule 44.4
25. A composition tax payer who ceases that scheme can claim ITC on input goods and capital goods after reducing the tax paid on such capital goods by 5 per cent per quarter of a year or part thereof from the invoice date in form GSTITC01 . Sec 18.1.c, rule 40.1
26. A new registrant can fill part B of GSTREG01 for option.