GST Composition Scheme
Posted @ February 6, 2017, 9:02 pm under (GST Compliances)
Section 9 of the model GST Act provides composition scheme for small entrepreneur.
Registered taxable person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt this scheme.
Prior approval from the appropriate GST authority shall be requiered.
Aggregate turnover shall include value of taxable and non taxable supplies, exempted and Export Supplies, but does not include Taxes levied under SGST/IGST.
Taxable person, having Inter State sale cannot opt for Composition Scheme.
Service Provider cannot opt for Composition Scheme. It is applicable to a manufacturer only.
Can not collect Tax from the recipient
A composition taxpayer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semifinished or finished goods held in stock on the appointed date subject to prescribed conditions: