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Useful Information for Your Business

Under Composition Scheme, the registered taxpayer cannot issue a regular tax invoice and also claim input tax credit. As per the current provisions, the threshold limit for composition Scheme is Rs 1.50 Crores expect in the following states, where the threshold is capped at Rs 75 Lacs.

<!--[if !supportLists]-->o    <!--[endif]-->Arunachal Pradesh

<!--[if !supportLists]-->o    <!--[endif]-->Manipur

<!--[if !supportLists]-->o    <!--[endif]-->Mizoram

<!--[if !supportLists]-->o    <!--[endif]-->Nagaland

<!--[if !supportLists]-->o    <!--[endif]-->Sikkim

<!--[if !supportLists]-->o    <!--[endif]-->Tripura &

<!--[if !supportLists]-->o    <!--[endif]-->Uttarakhand

A registered person cannot take registration under GST if he is meeting any of the of the following conditions

<!--[if !supportLists]-->a)       <!--[endif]-->Dealing in goods and services not taxable under GST

<!--[if !supportLists]-->b)       <!--[endif]-->Supplies goods outside the state

<!--[if !supportLists]-->c)       <!--[endif]-->He is not supplying goods through e-commerce operator who is required to collect tax at source in GST

<!--[if !supportLists]-->d)       <!--[endif]-->Registered as tax deductor in GST

<!--[if !supportLists]-->e)       <!--[endif]-->Manufacturing ice creams, pan masala, tobacco and substitutes of tobacco

<!--[if !supportLists]-->f)        <!--[endif]-->Input service distributor

<!--[if !supportLists]-->g)       <!--[endif]-->Casual taxable person

<!--[if !supportLists]-->h)       <!--[endif]-->Non-resident taxable person

The composition taxpayer will issue a bill of supply in place of tax invoice on his supplies.

The composition taxpayer has to file GSTR – 4 annually and make payment of taxes on quarterly basis wide Form GST CMP – 08.

Existing taxpayers who are registered as regular taxpayers and are willing to opt for composition scheme can file the Form GST CMP – 02 by 30th June 2020.

The taxpayer who are currently under regular registration scheme and willing to opt for the composition scheme and filed Form GST CMP – 08 and also file another form called Form ITC – 03. In this form, the input tax credit on the closing stock and capital goods has to be paid. The amount of tax to be paid on the closing stock and capital goods can be paid through input tax credit balance if any or through cash.

Logo recommends the taxpayers who are dealing with business to customer (B2C) segment as they do not claim input tax credit. If the taxpayer wants to migrate to composition scheme, he has to file GST CMP – 02 by 30th June 2020 and Form ITC – 03 by 31st July 2020.

 

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