Be GST Ready 

GST Coming from 1st July, 2017

GST gives big relief to small traders/manufacturers/restaurants

Manufacturer/ Service Provider/Trader whose annual turnover is below Rs, 20 Lakh* need not pay any GST and need not register.

Those with annual turnover up to Rs. 75 lakh can opt for composition scheme in which case the tax rates will be as follows:-

GST Rate of Composition

  • In service sector, Composition Scheme is available only tor one sector– restaurants.
  • In case of certain industries such as ice-cream making, the composition scheme may not be available. The list will be a announced soon.
  • The dealers who opt for composition scheme have to file only one quarterly return with details of total turnover. Invoice with details are not necessary, bill of supply will suffice.
  • Small taxpayers are not required to give HSN code in their returns.
  • However, in this option, no input tax credit can be taken or passed on.
  • With online registration, return, payment, refund & other processes, delays and discretion would be reduced.
  • Reduced compliance burden.
  • Special dispensation for job- work to help job workers in GST Regime.

*This limit is Rs 10 lakh for 11 States namely Assam, Arunachal Pradeth, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Uttarakhand, Himachal Pradesh and Jammu & Kashmir.

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Category : Goods and Services Tax (4577)
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Tags : goods and services tax (3138) GST (2725)

8 responses to “GST gives big relief to small traders / manufacturers / restaurants”

  1. Sabarish says:

    Hi,
    Please confirm composition scheme applicable for Job worker.
    If yes what would be rate

  2. Ramesh vadera says:

    can u pls explain this sentance from your article

    “Special dispensation job- work to help job workers in CST”

  3. rajarajan says:

    true.but let them get registered.anyway their growth will not be static.only some returns have to be managed which can be done.

  4. Ramasamy says:

    it has some impact on their future business of unregistered small traders and composite scheme suppliers. None of the registered customers prefer to buy from unregistered dealers and doing additional compliance at his end like self invoicing & RCM etc.

    Since, unregistered dealer & composite scheme dealer not allowed to take input credit.. Cost of product supplied by them would go up while comparing to registered supplier so in all sense registered customer try to avoid this two type of suppliers.

    • CA VIJAY PATIL says:

      It’s True specially for B2B business, that URD/composition taxpayer will have business concern.

      But for B2C business, URD/composition option is useful to avoid compliance.

      Thanks,

    • Rajesh Taneja says:

      Hello,
      I need to know, as I am an exhibitor (Mela’s participant) usually sale our products in different states of India but my annual turnover is lesser than 20 lakhs as exempted in GST.
      (1) So how do I carry my merch to different states, do I need to pay any kind of tax over that?
      (2) Do I need to register with GST.?
      (3) What is the best wayout of it because already we pay very high rentals of exhibitions it’s really very difficult to bear taxes as well.
      (4)what is composition?, where 1% tax gets charged?
      Sir, kindly reply soon to queries soon.
      Thanks

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