FAQ- To Opt Composition Scheme( Explained under GST)

-

1. How to opt for the Composition Scheme in GST?

You can opt for the Composition Levy under GST if you are a regular taxpayer with an aggregate annual domestic PAN-based turnover as specified from time to time.

However, you cannot opt for the Composition Levy if you are/you make:

- any supply of goods which are not liable to be taxed under this Act

- inter-state outward supplies of goods

- supplies through electronic commerce operators who are required to collect tax under section 52.

- a manufacturer of notified goods

- a casual dealer

- a Non-Resident Foreign Taxpayer

- a person registered as Input Service Distributor (ISD)

- a person registered as TDS Deductor/Tax Collector


Composition Scheme Under GST- Limit, Eligibility, Rates and Benefits


2.How do I apply for Composition Scheme if I am already registered as a regular taxpayer?

To opt for the Composition Levy, perform the following steps on the GST portal:

  1. Log in to the Taxpayers’ Interface
  2. Go to Services > Registration > Application to Opt for Composition Levy
  3. Fill the form as per the form specification rules and submit.

3. How do I convert from regular to composition scheme in GST?

Any taxpayer who is registered as normal tax payer under GST needs to file an application to opt for Composition Levy in Form GST-CMP-02 at GST Portal prior to the commencement of financial year for which the option to pay tax under the aforesaid section is exercised.


4. When can I opt for the Composition Levy?

In order to avail this scheme, you need to file an online application to Opt for Composition Levy with the tax authorities. Taxpayers who can opt for this scheme can be categorized as below:

  

  1. New Taxpayers: Any person who becomes liable to register under GST Act, after the appointed day, needs to file his option to pay composition amount in the Application for New Registration in Form GST REG-01.

 

  1. Existing Taxpayers: Any taxpayer who is registered as normal tax payer under GST needs to file an application to opt for Composition Levy in Form GST-CMP-02 at GST Portal prior to the commencement of financial year for which the option to pay tax under the aforesaid section is exercised.


5. What are the returns to be filed by a Composition taxpayer?

Composition taxpayer needs to pay tax and furnish a statement, every quarter or part thereof, as the case may be, in FORM GST CMP-08.

And further he has to furnish a return for every financial year or part thereof, as the case may be, in FORM GSTR-4.


Comments

Post a Comment

Popular posts from this blog

Apply For GST Registration

-
Image
GST REGISTRATION STARTING @Rs.499 And Rs.999                                     CONTACT US: 7011807058 / 8800703110                         WHATSAPP ME: 7011807058 We can help you get GST registration for your business within 48 hours. Our services are best in class and is at a reasonable cost (INR 499/- per registration for individual and INR 999/- per registration for company)Type your paragraph here.   How Does GST Registration help You:- GST registration not only helps you in getting your business recognized as a legal registrant but also opens a number of opportunities for your business. Benefits to GST registered business at glance are as follows: - Become more competitive – You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration. Expand your business Online – You ...
Read more

Types of GST Returns

-
Image
GST return is a format where a taxpayer registered under the Goods and Services Tax (GST) law has to file for each registration separately. Also, the number of GST returns to be filed will be based on the type of taxpayer, such as regular taxpayer, composition dealer, e-commerce operator, TDS deductor, non-resident taxpayer, Input Service Distributor(ISD) etc. 1. GSTR-1 GSTR-1  is the return to be furnished for reporting details of all outward supplies of goods and services made, or in other words, sales transactions made during a tax period, and also for reporting debit and credit notes issued. Any amendments to sales invoices made, even pertaining to previous tax periods, should be reported in the GSTR-1 return. GSTR-1 is to be filed by all normal taxpayers who are registered under GST. It is to be filed monthly, except in the case of small taxpayers with turnover up to Rs.1.5 crore in the previous financial year, who can file the same on a quarterly basis. 2. GSTR-2A GSTR-2A ...
Read more

Facility for registration of IRP/RPs made available on the GST Portal

-
Image
The Insolvency Resolution Professionals/ Resolution Professionals (IRPs/RPs), appointed to undertake corporate insolvency resolution proceedings for Corporate Debtors, can apply for new registration on GST Portal, on behalf of the Corporate Debtors, in each of the States or Union Territories, on the PAN and CIN of the Corporate Debtor, where the corporate debtor was registered earlier, in terms of Notification No. 11/2020-CT, dated 21st March, 2020 and as amended vide Notification No. 39/2020-CT, dated 5th May, 2020. The IRP / RP are required to obtain a new registration within thirty days of their appointment as IRP/RP or by 30th June, 2020, whichever is later, except in cases where the corporate debtors have filed Form GSTR-1 and Form GSTR-3B, for all the tax periods prior to the appointment of IRP/RP. They should select the Reason for Registration as “Corporate Debtor undergoing the Corporate Insolvency Resolution Process with IRP/RP” from the drop down menu. The date of commencemen...
Read more