GST Ki Master Class III: Composition and record keeping
GST
Dated:- 8-7-2017
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Document 1
GST
Ki
Master Class III
Composition and record keeping
This class is in two parts..
PART A-Composition Scheme
What is the composition scheme
Who is eligible to avail composition scheme
Category of persons excluded from the Scheme
Composition rates and computation of tax
Procedure to be followed
Part B- Accounts and records
Accounts and records to be maintained
Period for which to be retained
Part A Composition Scheme
Composition levy is an option for specified categories of small taxpayers to pay GST at a very low rate on the basis of turnover.
Advantages
Low rate of tax
Hassel free simple procedures for such taxpayers
Simple calculation of tax based on turnover
A very simple quarterly return
Composition Scheme
The composition scheme is for
Manufacturers
(other than few notified goods)
Traders of goods
Restaurants
h
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in M P. Total turnover of two units in last FY was Rs 55 lakh. Total turnover of two units in the first quarter of this year was Rs 20 Lakh
Composition Scheme-Who is not eligible
Supplier of services except restaurants
Any person who
makes (i) a supply of non-GST goods; or (ii) an inter-state supply; or (iii) a supply that attract TCS
is engaged in manufacture of goods, namely,
ice cream, pan
masala
or tobacco and manufactured tobacco substitutes
Is a casual or a non-resident taxable person
Composition Scheme-
Conditions & restrictions
If at the time of opting for scheme he has stock of goods purchased from unregistered person he will pay the tax on such goods
Not entitled to take ITC on inputs
Pay tax on inward supply from unregistered dealers
Pay tax on supply attracting reverse charge
Shall not collect any amount as tax
Shall mention on bill of supply
“Composition taxable person, not eligible to collect tax on supplies”
Shall mention “
composit
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e
Agent to maintain records receipt and supply on behalf principal and records of authorization by the principal
A C&F agent or a carrier having custody of goods on behalf of a registered person shall maintain details of goods handled by him.
Accounts and Records-requirements
It is sufficient (
but not necessary)
to maintain accounts and records in electronic form
Records can also be maintained manually – Such records are to be kept and be accessible at related place of business.
Required to retained for six years from the due date of annual return
Commissioner may for a class of taxable persons
notify maintenance of additional documents
prescribes alternative documents, if such class is not able to maintain records as per the provisions of the Act.
Separate records for works contract ( receipt /supply /payments etc.)
Production of records on demand
Accounts and Records-requirements
Every taxable person having turnover exceeding prescribed limit shall get his acco
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