The composition scheme under GST is for small businesses. So, any big company cannot apply for this scheme. This scheme is only for companies whose annual turnover does not exceed 1.5 Crore for goods. In some North-Eastern states and Himachal Pradesh, the limit to avail of this scheme is 75 lakhs. So, any company earning above the mentioned limit cannot apply for the composition scheme. Are these the eligibility criteria or are there some other requirements? Who cannot opt for composition scheme? I will share all the details with you.
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Well, there are some companies that cannot apply for the composition scheme under GST even though they can be small with an annual turnover of less or up to 1 crore. Enterprises that cannot apply for a composition scheme under GST include
Enterprises that supply products other than suppliers who are the suppliers of restaurants.
Suppliers of goods that are not taxable under acts such as CGST/SGST/UTGST
A company that is a supplier of goods for the inter-state
Manufacturers providing goods through E-commerce platforms
Producer of certain notified products
Besides this, there are some businesses that cannot opt for the composition scheme. These include
Manufacturer of ice cream, edible ice, including or not including cocoa
Pan masala
All products that contains tobacco or tobacco substitutes
I hope I was able to clear the doubt regarding who cannot opt for composition scheme.
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Who cannot opt for composition scheme?
Debon
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2 Year
2022-09-13T10:32:37+00:00 2022-09-13T10:32:39+00:00Comment
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