GST Composition Scheme limit raised to Rs.1 Crore – GST Council Meeting

Introduction

As expected, the GST council has almost reached the consensus that the composition scheme limited shall be increased to one crore from the present seventy five lakh.

The GST council in 22nd council meeting which is being held at the Vigyan Bhawan reached a consensus that the limit for composition scheme should be raised to 75 lakh said the Finance minister of Andhra Pradesh.

This comes in a time when government is being criticized for the poor implementation of GST especially the small taxpayers on which the compliance burden comes with an additional cost of compliance and hence, GST council is rethinking on how the small taxpayers should be provide their due relief so that implementation of GST can be smooth for them.

Small features of composition scheme under GST

Taxpayers who opt to pay tax under composition scheme works under the following features:

• ITC cannot be claimed by Composition dealers.
• They cannot issue tax invoice, i.e. cannot collect tax from the customers.
• They need to pay the tax at a concessional rate i.e. 1% by traders, 2% by Manufacturers and 5% by restaurants.
• Composition dealers cannot do make any interstate supply.

Many more benefits to come

Let see what all did the government has decided when the council of GST gets over.