GST as we all know is the Game changer has increased Number of Taxpayers Basically Small and Medium Enterprises but at the same time their compliance for SME was a big Challenge. In order to overcome the compliance burden, Composition Scheme has been introduced under GST whereby Taxpayer has to pay the GST at the lowest Rate.
Eligibility for Composition Schemes Under GST:
Taxpayer with Turnover limit up to 1.5Cr (In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75 lacs) can opt for Composition scheme voluntarily.
Conditions to be fulfilled for Composition Scheme Under GST:
Registrations Process for Composition Scheme Under GST:
1 .Form GST CMP-1: A business who has registered under earlier regime and who wanted to opt for Composition Scheme on migrating to GST.
2. Form GST CMP -2: This is applicable for those businesses that have registered under GST regime as a regular dealer and wanted to opt for Composition Scheme. The intimation via this form needs to be done before the commencement of financial year.
3. Form GST REG-1: Business applying for fresh registration in GST, and wanted to opt for Composition Scheme, can provide the intimation while the submitting registration online.
Returns Formalities for Composition Scheme Under GST:
Taxpayer has to file Quarterly Returns GSTR-4 as per the due date specified and also an Annual Return GSTR-9A by 31st December of next Financial Year under Composition Scheme.
Advantages of Composition Scheme Under GST:
Disadvantages of Composition Scheme Under GST:
Updated Tax Rates of Composition Scheme Under GST updated with Notification issued on 01-01-2018