Tax Creators

 Composition Scheme Under GST

⛳ A registered person, whose aggregate turnover in the preceding FY doesn’t exceed Rs. 75 Lakhs may opt for Composition Scheme and pay tax.
⛳ It would be applicable for all transactions under the same PAN-India bases.
⛳ Composition taxable person shall not be eligible for any Input tax credit.
⛳ CTP shall not collect any tax on supply.
⛳ CTP will issue Bill of Supply instead of Tax Invoice.
⛳ CTP is liable to pay tax on receipts of goods or services from un-registered person.
⛳ CTP is liable to pay tax on receipts of services under RCM.
⛳ No ITC allowed for taxed paid under reverse charge.

⛳ Persons not eligible:
🌴 Effecting inter-state outward supplies.
🌴 Making supply of exempted goods.
🌴 Engaged in supply of any other service except food/restaurant services.
🌴 Making any supply of goods through an e-commerce operator.
🌴 Manufacturer of notified goods.

⛳ The Registered person paying tax under composition scheme is required to pay tax on quarterly basis and also required to file a quarterly return in Form GSTR-4 by the 18th of the month following the end of the quarter.

⛳ The option availed by a registered person shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds fifty lakh rupees.

⛳ Person Registered Before GST Regime (Opt for Composition)
🌴 Having Prov. ID shall file an intimation in FORM GST CMP-01 within 30 days from AD.
🌴 Required to file detail of stock from all suppliers (including unregistered) AND Input credit in Return as on 30 June 2017 in FORM TRAN-1.
🌴 Further, detail of stock from all suppliers (including unregistered) AND Inward supply as on 30 June 2017 in FORM GST CMP-03 within 60 days of opting for composition.

⛳ Person Registered Under GST Regime (Opt for Composition)
🌴 Any Person who are not registered under the existing law and applies for registration under GST regime with an option to pay under composition in Form GST REG-01.
🌴 Further, registered taxable person files an intimation to pay tax under composition in FORM GST CMP-02 prior to commencement of FY.
🌴 Further, furnish the statement in Form GST ITC-03 within 60 days (Regular to Composition) of commencement of FY.

⛳ Condition & restriction to Opt for Composition
🌴 Cannot be a Casual Taxable Person or a Non-resident taxable person.
🌴 Goods in stock on transition date must not have been purchased in the course of inter-State trade or commerce or imported from a place outside India or received from his branch situated outside the State or from his agent or principal outside the State.
🌴 If goods held in stock on AD purchased from an unregistered supplier or any notified goods or services or both, then pay tax under RCM.
🌴 Not engage in the manufacture of notified goods during the preceding FY.
🌴 On every notice or signboard mandatory to mention the words “Composition Taxable Person”.
🌴 On top of Bill of Supply mandatory to mention the words “Composition Taxable Person, not eligible to collect tax on supplies”.

⛳ Validity of composition levy (Opt Out from Composition)
🌴 If CTP ceases to satisfy any condition or suo-motu, require to furnish FORM GST CMP-04 within 7 days of occurrence of such event then, shall liable to issue Tax Invoice.
🌴 Proper officer may issue SCN in FORM GST CMP-05 & the recipient gives his reply in FORM GST CMP-06 within 15 days, thereafter the proper officer issue an order in FORM GST CMP-07 within 30 days.
🌴 Further, furnish the statement in FORM GST ITC-01 for the ITC CLAIM within 30 days.

⛳ Rate of Tax
S. No. Category of Registered Person Rate of tax
CGST+SGST
1. Manufacturers or other than manufacturers notified by the govt. (ice-cream, tobacco, pan masala) 1%+1%= 2%
2. Suppliers of food & any human consumption article or drink except alcohol. 2.5%+2.5%= 5%
3. Any other Supplier eligible to opt CS 0.5%+0.5%= 1%