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BENEFIT OF COMPOSITION SCHEME

1 Easy compliance as no accounts and records to be maintained.

2 Simple quarterly Return along with quarterly payment of taxes.

Tax Rate under composition Scheme

All the Rates are applied on Turnover in a state or Union Territory.

Returns Under Composition scheme

Process of Registration in Composition scheme

New Taxpayer

Any person who is liable to get register under GST Act and who wants to pay Tax under Composition Scheme may file an application for new registration under GST REG-01.

Conversion from Regular To Composition Scheme

Registered Person who wants to opt Composition scheme needs to file an application in GST Form GST CMP-02 prior to the commencement of Financial Year.

Further he has to file GST ITC-3 within 60 days from the commencement of Financial Year in which he opts for Composition scheme declaring Input held in stock, input contained in semi-finished or finished goods.

Person who are not eligible for composition Scheme

1 Casual Taxable person

2 Non- Resident Taxable Person

3 Person engaged in inter-state supply, supply of non-taxable goods.

4 Person engaged in supply of goods through Electronic Commerce operator

5 Person who is engaged in manufacturing of goods notified in 10(2)(e) of CGST Act i.e.

Ice cream and other edible ice, whether or not containing cocoa

Pan Masala

Tobacco and manufactured tobacco substitutes

Condition & Restriction under Composition Scheme

Person registered Under Composition Scheme cannot issue Taxable Invoice instead he has to Issue Bill of Supply mentioning “composition Taxable Person, not eligible to collect tax on supplies”.

Do not able to claim input tax credit on its Purchases

Have to pay all taxes on purchases including on Reverse Charge Mechanism.

Have to Display “Composition Taxable Person” on every Notice Board or signboard at Prominent Place of Business