GST- Composition Scheme \u2014 reg
C1-24614\/16\/CT E-office 11137\/17 Dated:- 11-8-2017 Kerala SGST – Circular
GST – States
Office of the Commissioner,
\nKerala Goods and Services Taxes Department,
\nTax Tower, Thiruvananthapuram.
\nC1-24614\/16\/CT E-office 11137\/17
\nDated 11th August 2017
\nADVISORY – 4
\nSub:- GST- Composition Scheme – reg
\nNormally the taxable person is required to pay CST at specified rate on supply of goods or services. However, the CST law provides simplified scheme under Section 10 for payment of taxes under composition scheme for small and medium business enterprises. It is merely an extension of presumptive tax payer scheme under the VAT laws. The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. It is an optional scheme, instead of paying tax at normal rate. The composition scheme minimizes the burden of compliance and saved from the maintenance of elaborate records and filing of detailed returns. <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ) Casual taxable person and Non-resident taxable person are not eligible for composition scheme. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n lars given above are true and correct. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n scheme terminates on the day in which the aggregate turnover in a financial year exceeds the threshold minimum. In such cases the taxpayer shall file an application electronically in Form GST CMP-04. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST- Composition Scheme \u2014 regC1-24614\/16\/CT E-office 11137\/17 Dated:- 11-8-2017 Kerala SGST – CircularGST – StatesOffice of the Commissioner, Kerala Goods and Services Taxes Department, Tax Tower, Thiruvananthapuram. C1-24614\/16\/CT E-office 11137\/17 Dated 11th August 2017 ADVISORY – 4 Sub:- GST- Composition Scheme – reg Normally the taxable person is required to pay CST at specified rate … Continue reading “GST- Composition Scheme \u2014 reg”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7325","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7325"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7325\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nix) The person opting the composition scheme shall not collect composition tax for the supplies made.
\nx) The person opting the composition scheme is not eligible to avail input tax credit.
\nxi) Stock held as on 30th June, 201 7 shall not include imported or interstate purchased goods.
\nxii) Stock held as on 30th June, 2017 shall not include goods purchased from unregistered supplies. However such persons can opt the scheme after paying tax at CST schedule rate.
\nxiii) If more than one registration is token against a single PAN, all registered persons shall opt this scheme.
\nxiv) A composition taxpayer shall display the word 'Composition taxable person' in the signboard.
\nA composition taxpayer cannot issue a tax invoice but issue bill of supply. In the top of the bill of supply endorse the word 'Composition taxable person, not eligible to collect tax on supplies'. A buyer <\/p>\n
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\nOriginal for Receipient for M\/s……………………
\nDuplicate for Supplier \/Seal\/
\nAuthorised signatory
\nName of Firm
\nConditions: Bill No. shall not exceed 16 characters.
\nMultiple bill series can be used but unique for a financial year.
\nIf the recipient is not a registered dealer and not requested invoice, a consolidated tax invoice to be issued for such supplies at the close of each day.
\nQuantum of Tax payable:
\nA registered taxpayer. who opt the Composition Scheme, shall be required to pay tax on the aggregate turnover. Turnover in State means aggregate value of taxable and exempted supplies. The specified rate is shown below:
\nCategory
\nCGST Rate
\nSGST Rate
\nManufacturers :- Excluding manufactures of
\ni) Ice Ice cream and other edible ice, whether or not containing cocoa)
\nii) Pan Masala.
\niii) Tobacco and manufactured tobacco substitutes.
\n1%
\n1%
\nRestaurant Services (Excluding supply of liquor)
\n2.50%
\n2.50%
\nAny other supply
\n0.50<\/p>\n
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\nReturn Filing:
\nA person opting composition scheme is required to furnish single quarterly return i.e. GSTR-4 and an annual return in FORM GSTR-9A. The GSTR-4 contains details of the turnover in the State, inward supplies of goods\/ services and tax payable.
\nA person opting for composition levy will have to pay tax on quarterly basis. The details in GSTR-4 should be furnished between 11th and 18th of the month succeeding the quarter during which the supplies were made.
\nBreach of conditions:
\nIf the proper officer has reason to believe that a composition dealer has wrongly availed the benefit under the composition scheme, then such a person shall be liable to pay all the taxes under the normal scheme. In such scenario officer shall issue a show cause notice 10 such person in Form GST CM<\/p>\n
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