by Madhav Joshi
Posted on June 4, 2019
Composition scheme is a simple and easy scheme for small traders and business in GST. Amitbhai Patel, a small-time trader in Madhupura Market of Ahmedabad. His business turnover was ₹48.37 lakhs last year and due to demonetization, he doesn’t expect his turnover for this financial year to be more than ₹55 lakhs.
He deals with numerous traders and manufacturers and now in GST, it has become tough for him to handle the taxation and accounting. Many of his suppliers and vendors don’t have an organised structure of business due to their small operations. His main customers are irregular and small time buyers. They usually hail to small towns of Gujarat & Rajasthan.
So, it’s better for him to opt for composition scheme under GST. This will give him ease of doing business accounting as well much time for return preparation without worrying much of paying tax.
Business dealing only in goods and Taxpayer that turnover is below 75 lakhs and above 20 lakhs can opt composition scheme. For North-East states and Himachal Pradesh – the turnover value is below 50 lakhs and above the 10 lakhs.
Payment of tax or filing of return on Quarterly basis
In case Composition dealer has wrongly availed benefit under composition scheme. Then it shall be liable to pay all the tax which it would pay under normal scheme and penalty is equivalent to the amount of tax payable.
Its eligible for CENVAT Credit under such good of the previous regime
Eligible for Input tax credit
Legal evidence of input tax paid
GSTR-4 is furnished for composition scheme in quarterly basis on 18th of the month after the end of the quarter.372 Views 0 comments