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

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28 responses to “Migrants under GST Composition Scheme”

  1. 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

  2. MHK says:

    Dealer was registered under VAT in Maharashtra now decides to opt for composition scheme under GST. Will he need to pay first entire VAT or input availed earlier on stock as on 30-06-2017 which he has already utilized in his vat returns by 30th June 2017

  3. S.A.Ganesh says:

    The composition dealer has to pay on his aggregate turnover ( which includes exempted supply also). Thus is it necessary to pay on the exempted turnover also

  4. J S Rana says:

    Customer registered under composite scheme can take supply fro Inter state .

  5. AMBESH BIYANI says:

    What about op stock of goods such as fabrics on which no input tax has been paid erstwhile in earlier VAT regime. Now the same has been taxable @5%, whether we have to pay RCM on the op. stock of cloth before going for composition ..?

  6. V.K.Dadoo says:

    We are located in Uttrakhand. We are doing Job Work for Govt undertaking. We are also manufacturing and supplying Turbine Parts to customers within and outside Uttarakhand. Total turnover does not exceed Rs. 75 Lacs.
    Are we eligible for Composite Scheme?. Kindly reply at e mail vijayengrs44@gmail.com

  7. omkar says:

    If, i go with composition scheme, can purchase from out of state?

  8. Gulshan Kumar says:

    I have already migrated but after login I am not getting link for opted composition scheme. There is showing access denied. What is solution.

  9. Prasad says:

    mere ko email aa raha hai opt composition dealer filed
    But not option in gst portal
    I have already provisional migrated and register.

    What is process?

    • inesh Choudahry says:

      After migration under GST u should file Form GST CMP-1 and GST CMP-3 to department either electronically & manually.

  10. Rajneesh Dhiman says:

    In composite scheme can goods purchase from any other state

    • NILESH MAHESHWARI says:

      inter state supply not allowed.inter state purchase is allowed.but at the time of taking composition scheme u should not have any inter state material as stock.

  11. Raghu says:

    FORM GST REG- 01 where we have to submit,

  12. Shekh says:

    How to download RC. In gst
    ARN process is complet

  13. Shyam says:

    The rates mentioned above states only the CGST part alone. A dealer has to consider both CGST and SGST. In such case the rate mentioned above would get double.

  14. Santosh says:

    How the regular regd dealer will come to know whether he is dealing with the regd or composite dealer

  15. PRADEEP says:

    WHERE I WILL BE DEPOSITED THE SAME FORM

  16. PC JAISWAL says:

    IN COMPOSITE SCHEME INTERSTATE PURCHASE IS ALLOWED BUT INTER STATE SALES IS NOT ALLOWED.
    2.GST ARE PAID ON BOTH ITEM TAX ABLE AS WELL L NON TAXABLE BECAUSE IT IS ON THE BASIS OF TURNOVER

  17. VINOD KUMAR PANPALIYA says:

    PLEASE CONFIRM THE RATES FOR COMPOSITION SCHEME AFORESAID

  18. Samit says:

    I have already migrated but after login I am not getting link for opted composition scheme. There is showing access denied. What is solution.

  19. TUSHAR says:

    will service provider also get composition scheme??

  20. NILESH MAHESHWARI says:

    will i have to pay the input tax first on the stock which i have before going for composition scheme?

  21. balakrishnan says:

    Based on the GST no, how to find out a dealer whether they have registered under regular or composition scheme.

    • Ekta Maheshwari says:

      In Part B of FORM GST REG- 01, concerned person are asked to ans whether they want to opt for composition scheme or not. From there they will get to know as to whether they are normal taxable person or composite dealer.

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