The GST Composition Scheme is suitable for small and medium-sized businesses in India. My company pays GST with the help of this programme. Because the annual sales of my company are less than Rs 1.5 crore. So let’s take a look at who can opt for composition scheme in GST.
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The composition plan is available to any company or trader with a fiscal year revenue of less than Rs 1.5 crore. Restaurants will be subject to this restriction that does not serve alcohol. For the Northeastern states and Himachal Pradesh, the threshold cap is Rs 75 lakh. Suppliers may use the GST composition plan if their annual revenue is less than Rs 50 lakh.
You must submit an electronic notification in the form GST CMP-01, fully signed, before or within 30 days of the designated date. If you are given registration on a temporary basis (registered under the VAT Act, Service Tax, Central Excise rules, etc.) and elect to pay the composition levy. So now you know who can opt for composition scheme under GST.
Who is not eligible for the composition plan?
The following companies are not permitted to choose the composition scheme:
Producers of tobacco, pan masala, and ice cream
Companies that produce interstate products
Companies delivering goods through an e-commerce platform
Companies registered as casual taxable persons or non-resident taxable persons
What are the requirements for choosing the composition scheme?
Any company choosing to use the GST composition scheme must meet the requirements listed below:
Unable to provide products exempt from GST.
Cannot claim tax credits for purchasing.
For transactions made using the reverse charge system, standard GST rates will be in effect.
Include "Composition Taxable Person" on all notices and purchase orders (invoice issued by a composite dealer).
If you're a producer or merchant, you can offer services up to 10% of your annual revenue or Rs 5 lakh, whichever is larger.
The plan must be chosen by all company sectors registered under the same PAN, or they should completely decline to participate.
This is all I wanted you to know about who can opt for composition scheme.
Read More: What is the late fee for GST return? What is GST rate on real estate? How to change proprietor name in GST? How to change quarterly to monthly in GST?Your Feedback Matters! How was this Answer?
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Who can opt for composition scheme?
Kale
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2 Year
2022-09-08T17:50:44+00:00 2022-09-08T17:50:45+00:00Comment
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