GST – GST Law and Procedure – 254 – Benefit to small and medium taxable persons except service provider A taxpayer would be required to comply with the detailed procedural task including accounting and paper work which may involve heavy compliance cost. It may be possible that Small / medium taxable persons do not have sufficient knowledge and expertise to comply with the requirements relating to records, accounts filing of detailed monthly returns. Hence, a simplified, though limited, composition scheme has been provided under section 10 of CGST Act. Eligibility A registered person, whose aggregate turnover in the preceding financial year did not exceed 75 lakh rupees. In case of Uttarakhand and Jammu & Kashmir also, the turnover limi
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(1) of CGST Act and rule 7 of CGST Rules, 2017]- Sl. No. Category of registered persons Rate of tax CGST+SGST (1) (2) (3) 1. Manufacturers, other than manufacturers of such goods as may be notified by the Government 1% + 1% = 2% 2. Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II 2.5% + 2.5% = 5% 3. Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter 0.5% + 0.5% = 1% Meaning of 'manufacturer' As per section 2(72) of CGST Act, "Manufacture" means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordi
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c) he is not engaged in making any inter-State outward supplies of goods; (d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council: In addition Rule 5 provides various conditions and restriction for availing benefit of composition scheme. Various aspects of the Scheme The scheme is optional. The option under the Scheme will be Lapsed if the aggregate turnover during the financial year exceeds the turnover of ₹ 75 Lakhs / 50 Lakhs as the case may be. All registered taxable persons having same PAN number should opt for the c
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