Composition scheme for various taxpayers (GST)

GST shall be levied on all supplies of goods and services except on supply of alcoholic liquor for human consumption subject to exemptions provided by Government on recommendation of Council.

Further, where a person is engaged in making taxable supplies, there arises requirement to register under GST and liability to discharge GST.

The supplier has 2 options to discharge GST-

In order to avail composition scheme, Supplier has to satisfy the following conditions-

1) Condition 1- Turnover limit (Notn 14/2019-CT)

Aggregate turnover in preceding financial year does not exceed-

a) INR 75 Lakhs in special category states i.e. Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand.

b) INR 1.5 Crores in other States.

2) Condition 2- Type of supplier

* This Service provider may opt for new scheme where tax is to be paid on concessional rate of 6% on first supplies to the extent of 50 lakhs of goods and services in case the aggregate turnover in PFY is upto 50 Lakhs  –Notn 02/2019-CT(R)

**Where turnover in PFY is upto 40 Lakhs, taxpayer is exempted from registration vide Notn 10/2019. The supplier may consider the exemption laid under this notification while taking GST registration.

3) Condition 3-Type of supply

a. Not engaged in supply of non taxable goods

b. Not engaged in making supply of goods through ecommerce operator who has to collect TCS under section 52 of CGST Act.

c. He is not a manufacturer of goods as notified by Government

d. He is not a casual taxable person or Non Resident Taxable person

e. No goods purchased from unregistered dealer, if purchased, tax paid under section 9(4) of CGST Act.