true

Find the best tutors and institutes for CA Coaching

Find Best CA Coaching classes

Please select a Category.

Please select a Locality.

No matching category found.

No matching Locality found.

Outside India?

Search for topics

GST Composition Levy-Section 10 (GST made easy by Devendra Kumar Sir) Free Demo Class on GST (Indirect Tax)

Devendra Kumar
31/05/2018 0 0

Composition Leavy:

Introduction

The objective of composition scheme is to bring simplicity and to reduce the compliance cost

For the small taxpayers. Supplier opting for composition leavy need not worry about the

classification of their goods or service or both, the rate of GST applicable on the same, They are

not required to raise any tax invoice but merely need to issue a bill of supply wherein no tax will

Be charged from the recipient. At the end of a quarter, the registered person opting for

composition leavy would pay a certain specified percentage of his turnover of the quarter as

tax, without availing the benefit of input tax credit

 

Who can opt –

A taxable person, having an aggregate turnover not exceeding Rs. 100 Lacs (75 Lakhs in special category states) in the preceding financial year [Limit raised vide Notification No. 46/2017] – Can be opted out during the year

• Who cannot opt –

Manufacturer manufacturing notified goods – Supplier of any services other than Restaurant/ Catering etc.

– Supplier engaged in making the supply of goods which are not leviable to tax under the Act

– Supplier making inter-state outward supplies. – Supplier making Sales through e-commerce operators.

– A casual taxable person or non resident taxable person.

• Other provisions – Liable for reverse charge payment

– He cannot claim Input tax credit – He cannot charge/collect any tax from his buyer

– His Tax is not available as credit to Buyer

– He cannot issue tax invoice – Should mention Composition on board

– The goods held in stock on an appointed day, have not been purchased in the course of inter-state or Import or Central purchases against Central Statutory Forms

– Can purchase interstate – He shall mention words Composition Taxable Person in Bill of Supply raised by him

Rates (CGST – Similar rates applicable for SGST)

– Supplies of Goods other than manufacturer 0.5% under CGST Act.

– Supplies of Goods if manufacturer 1% under CGST Act.

– Supplies of specified services of Restaurants, Hotel and Dhaba etc. 2.5% under CGST Act

 

Procedure for opting for Composition

File intimation in Form GST CMP – 01 (migrating taxpayers) or Section 10 of REG 1 (new taxpayers


For Existing Taxpayers Composition can be opted by filing Form GST CMP-02 before the commencement of FY


The choice available for opting Composition in middle of the year for FY 2017-18


Form ITC – 03 has to be filed within 60 (90 in case of FY 201718) days from the date of for payment of tax under Section 10 reversal of Input Tax Credit on Stock.


Stock details held on date opting for Composition to be provided in Form GST CMP-03
Once choose for Composition is valid till not opt out and conditions are fulfilled of composition dealer.

 

Procedure for withdrawal of Composition

When conditions of Section 10 are breached
File CMP 04 within seven days


Voluntarily

File CMP 04 before opting out


When the officer finds the contravention

SCN in CMP 05


Details of Input tax credit on the stock as on Date of Opting Out is to be filed in Form ITC-01 within 30 days from the date of opting out

Notice can be issued in Form GST CMP-05 by the officer to show cause within 15 days as to why the taxpayer is eligible for Composition Scheme


Reply to notice can be filed in Form GST CMP-06
An order issued by the officer in Form GST CMP-07 with 30 days after receiving the reply.

Thanks

Devendra Kumar

He is also providing Corporate Training for IFRS, IND AS and GST to various Corporate Employees, CA members and other Professionals along with other stakeholders.

Face to Face Class for CA,ICWA,CS,B.com student at Bangalore

On-Line class all over India

0 Dislike
Follow 2

Please Enter a comment

Submit

Other Lessons for You

Employability Skills to Get a Dream Job
What is employability? Employability means the quality of being suitable for a paid job. Why do Employability skills require? Employability skills needed for three reasons 1. To get the job 2. To...

Role of NLP (Neuro Linguistic Programming) in Personality Development
NLP (Neuro-Linguistic Programming) is a technology developed by Dr Richard Bandler and Dr John Grinder in 1970 in California University Santacruz. Neuro: Nervous System through which experience is received...


How to clear professional exams in first attempt.
Professional exams require some extra efforts than non-professional reviews. Following are some handy tips to get through these exams: 1. Yoga/ meditation: Doing yoga or meditation for at least forty...

Importance of Listening skill in Personality Development by Dr. Bharat Chaugule,Ph.D
Importance of Listening Skills in Personality Development Listening skill is an exceptional skill and available with very few peoples. Many people are great presenters, but very few are good listeners....

Looking for CA Coaching classes?

Find best CA Coaching classes in your locality on UrbanPro.

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you
Sponsored
X

Looking for CA Coaching Classes?

Find best tutors for CA Coaching Classes by posting a requirement.

  • Post a learning requirement
  • Get customized responses
  • Compare and select the best

Looking for CA Coaching Classes?

Find best CA Coaching Classes in your locality on UrbanPro

Post your learning requirement

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 25 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 6.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more