GST : Small Traders/Manufacturers/Restaurants can now opt for availing the Composition Scheme till September 30, 2017

You can now opt for availing the Composition Scheme till 30th September, 2017 and avail its benefits from 1st October, 2017.

Those with annual turnover upto Rs. 75 Lakh* can opt for Composition Scheme in which case the tax rates will be as follows:-

GST Rate of Composition

Traders – 1%
Manufacturers – 2%
Restaurants – 5%

  • In service sector, Composition Scheme is available only for one sector— restaurants.
  • The Composition Scheme is not available for manufacturers of tobacco and manufactured tobacco substitutes, pan- masala & ice-cream and other edible ice, whether or not containing cocoa.
  • Taxpayers, 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. First such return, for the quarter July-September, 2017, has to be filed by 18th October, 2017. Form GSTR-4A not to be filed for this quarter.
  • Small taxpayers are not required to give HSN code in their returns.
  • However, in Composition Scheme, no Input Tax Credit can be taken or passed on.
  • With online registration, return, payment, refund & other processes, delays and discretions would be reduced.
  • Reduced compliance burden.
  • Special dispensation for job-work to help job workers in the GST regime.

This limit is Rs. 50 Lakh for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh.

Source- CBEC

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2 responses to “GST : Composition Scheme can be availed till September 30, 2017”

  1. Kochar says:

    A cloth (fabrics) dealer, not registered under old regime, as the cloth was tax free. opted for composition from 01/07/2017 need not pay tax on stock as on 30-06-2017.
    If he opts for composition will he liable to pay tax on goods held in stock as on 30/09/2017?
    Can he opt if he has stock out of interstate purchases effected during August 2017?

  2. Thankachan says:

    I have filed July and August month GSTR3b returns. Now I wish to Opt Composition scheme.Is it Possible.Which type of return I will file July to September

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