In this article we are discussing the
doubts which will be raised by the business community related to GST Scheme .
Who can opt for Composition Scheme ?
Answer : Business dealing only in goods can
only opt for composition scheme.Service providers have been kept outside the
scope of this scheme.However ,restaurant sector taxpayers may also opt for the
scheme.And your annual turnover should below Rs 50 Lakhs
What is tax rate applicable on composite
dealer ?
Answer : A registered taxpayer , who is
registered under the composite scheme will pay tax at rate not more than 1% for
manufacturing ,2.5% for restaurant sector and .5% for other suppliers of
turnover.
Must a Composition Dealer maintain detailed
records ?
Answer: No a dealer registered under
composition scheme is not required to maintain detailed records as in the case
of a normal taxpayer
Do Composition Dealers have the option to
avail Input Tax Credit ?
Answer: No,a Composition Dealer is not
allowed to avail input tax credit of GST paid to their supplier
Can a Composite Dealer issue Tax Invoice ?
Answer: No Since a Composition Dealer is not allowed to avail input tax credit ,
such a dealer cannot issue a tax invoice as well . A buyer from composition
dealer will not able to claim input tax on such goods.
Can a dealer involved in interstate
supplies opt for Composition Scheme?
Answer: No, Composition scheme is
availiable only for intra -state supplies . If dealer is involved in
inter-state supplies then he cannot opt for the scheme
What are the transition provisions if a
business transits from composition scheme under current regime to Regular
Taxation under GST?
Answer: Tax payers registered under
composition scheme under the current regime will be allowed to take credit of
input held in stock,or in semi finished goods or in finished goods on the day
immediately preceding the date from which they opt to be taxed as a regular tax
payer
Which returns are required to be filed by a
taxable person registered under composite scheme ?
Answer : The taxable person is required to
furnish only one return i.e. GSTR-4 on a quarterly basis and an annual return
in FORM GSTR-9A
Is liability to pay taxes under Reverse
Charge Mechanism covered under the composite scheme?
Answer: Any tax payable under Reverse Charge Mechanism will not be covered under the scheme.These taxes will be liable to be paid as a normal tax payer.
Can a Composition Dealer collect composition tax separately ?
Answer: No a Composition Dealer is not
allowed to collect composition tax from buyer
What is the threshold limit to be eligible
for composition scheme ?
Answe:Any dealer whose aggregate turnover
in a financial year does not exceed Rs 75 Lakh can opt for composition scheme.
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