GST Composition reopens – Now opt for composition scheme under GST till 30th September 2017

Now, here comes the second opportunity for the entire registered person who wants to avail or opt the composition scheme till 30th September 2017. Earlier the due date for availing the composition scheme was 16th August.

Therefore, all those who could not opt for composition scheme may opt for it now. Earlier the last date to opt for the scheme was 16th August but the due date has been extended to 30th September 2017.

Further, the benefit of composition scheme shall start from 1st October 2017.

What is a composition Scheme?

Composition scheme is for every small and budding business (other than services) to avail for their benefit. It is for those who have an annual turnover of not more than Rs.75 lakh.

Once someone is registered in it they can enjoy many benefits and the compliances are also less. Composition levy cannot be availed by services providers other than restaurant owners.

Features of composition scheme

To someone who is not aware of the composition scheme, for them we list down some common features which every person should know if planning to opt the composition scheme:

• The GST composition scheme can only be availed by the supplier of goods and not services (except restaurant services).

• The GST tax rate for traders is 1% and for manufacturers is 2% and for the restaurant, services are 5%.

• The GST composition supplier cannot charge or collect tax from the customer. In other words, he cannot issue tax invoice. He shall have to issue a bill of supply.

• The GST return filing for composition dealer is quarterly and only one return is required to be filed as against the three monthly returns for normal dealers.

Conclusion

In case you want to opt for composition scheme, please email us at info@hubco.in.