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GST Registration (Composite Scheme)
All you know about GST
Registration under Composite Scheme
Composite Scheme has been
introduced for small taxpayer to get rid of tedious GST Compliance. In
composite scheme, tax at a minimum rate based on its turnover is to be paid.
However point to be noted is that the taxpayer will not be liable to take Input
Tax credit in this scheme.
A taxpayer whose turnover is
below Rs 1.5 crore (75 Lakhs for special categorized states) can opt for
Composition Scheme. Turnover of all businesses registered with the same
PAN should be taken into consideration while calculating turnover. A composition dealer can also supply services
to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher.
Who cannot opt for Composition Scheme
Manufacturer of ice cream, pan
masala, or tobacco
A person making inter-state
supplies
A casual taxable person or a
non-resident taxable person
Businesses which supply goods
through an e-commerce operator
Rate of Composition Levy in GST
1% of the turnover in State or turnover in Union
Territory in case of a manufacturer or traders
2.5% of the turnover in State or turnover in Union
Territory in case of Restaurants or
Hotels.