HURRY UP!! MIGRANTS UNDER COMPOSITION SCHEME-Last Date of Intimation is on or before 21st July, 2017

The last date for submission of intimation of composition scheme in on or before 21st July, 2017. The motto is to issue the registration certificate, called Goods and Services Tax Identification Number (GSTIN), to taxpayers who have already been issued provisional ID for registration (PID) as well as to the new taxpayers.

Let’s have a quick look to the various aspects of Composition Scheme:

Eligibility Criteria

A registered person, whose aggregate turnover in the preceding financial year did not exceed seventy five lakh*.

*In the following criteria(called Special Category States, except Uttarakhand, the threshold limit is fifty lakh rupees:

1. Arunachal Pradesh,

2. Assam,

3. Manipur,

4. Meghalaya,

5. Mizoram,

6. Nagaland,

7. Sikkim,

8. Tripura, and

9. Himachal Pradesh

Conditions to be satisfied

The registered person shall be eligible to opt under this scheme, if he satisfies following conditions:

(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II;

(b) he is not engaged in making any supply of goods which are not leviable to tax under this Act

(c) he is not engaged in making any inter-State outward supplies of goods;

(d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and

(e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council

Rate of tax of the composition levy

Category of registered persons Rate of tax
Manufacturers, other than manufacturers of such goods as may be notified by the Government one per cent
Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II two and a half per cent
Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter half per cent

Key Highlights of Composition Scheme:

– Non availability for Input Tax Credit

– No need to file fresh intimation every year

– Less Compliances

– Restricted to only Intra- State Supplies

– High Liquidity

Process on intimation under composition scheme

A person who are registered under VAT Act, Service Tax, Central Excise etc, are being granted registration under GST on provisional basis and who opts for composition scheme, shall file an intimation in FORM GST CMP-01 on or before 21st July, 2017.

Filling of Form GST CMP- 03

A person shall also file FORM GST CMP- 03 within 60 days of exercise of option:

– Details of stock

–  Inward supply of goods received from unregistered persons held by him on the date preceding the day of exercise of option

Effective date of Composition Scheme

For persons already registered under pre-GST regime, the effective date of composition scheme shall be the Appointed Day.

Source: https://taxguru.in/goods-and-service-tax/govt-notified-rules-issue-gst-registration-certificate.htmlhttp://www.cbec.gov.in/resources//htdocs-cbec/press-release /clarification-on-migration-press- release.pdf;jsessionid=123A99D552F619607C8FBFBD161304DB

Hope this information will help you in your Professional endeavors. For further assistance/query, feel free to write to us.

Download Form GST CMP 3

Download Form GST CMP- 1

Author: C S Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at csektamaheshwari14@gmail.com

Disclaimer:

The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.

Check GST Common portal for More Information

Author Bio

More Under Goods and Services Tax

Posted Under

Category : Goods and Services Tax (7413)
Type : Articles (17629) Trending (607)

29 responses to “Migrants under GST Composition Scheme”

  1. VITTAL says:

    I WAS IN COMPOSTION TILL 30/3/2018 AND I HAVE PLACED APPLICATION FOR WITHDRAWEL FROM COMPOSTION LEVY FROM 31/3/2018 ,WHEN I CHECKED MY STAYS IN GST PORTAL, IT SHOWS AS MENTIONED BELOW
    31/3/2018 REGULAR
    1/4/2018 TO TILL TODAY COMPOSITION
    KINDLY SUGGEST ME HOW TO GO AHED FOR BILLING WHETHER COMPOSTION/REGULAR BILLING

  2. Sanjay Barman says:

    Mistakenly i had opted for composite scheme and now want to switch to regular gst scheme please reply me with details what is the procedure and what to do

Leave a Reply

Your email address will not be published. Required fields are marked *