The Goods and Services Tax is implemented from July 1st, 2017 and will affect the prices of the...
The GST or Goods and Service Tax is a brilliant game changer; why, because of its implementation there has been a tremendous outflow of benefits. Since it’s launch i.e. from July 1, 2017, GST has been subjective to several debates and controversies, where many have been applauding the implementation and several opposing the immediate deadline. But all in all, GST has boosted revenue for the Government and for a strong majority of the businesses.
To know more about GST and it’s compulsory withdrawal from GST composition levy, below mentioned are common FAQs addressed.
The Composition Scheme is a simple and hassle-free compliance scheme, for every small taxpayer. However, it should be noted that the GST Composition Scheme is an optional and voluntary scheme.
For any individual who is having a PAN or Permanent Account Number can calculate aggregate turnover. To help in the calculation, aggregate turnover is the sum of the value of all outward supplies that fall in the following category:
All registered taxable individuals whose average turnover is not more than One Crore or 75 Lakhs (in case of J&K residents) in every financial year are not liable to apply for GST Composition Levy. For more clarity, the list of taxable individuals who are not eligible for the scheme are:
Any individual who is opting for the GST Composition levy scheme, has to adhere to the following mentioned conditions and restrictions:
Any individual who is planning to choose the composition levy scheme can easily continue to pay under the mentioned scheme as long as he/she qualifies the conditions and the eligibility criteria that are in relation to the scheme. Please note that in reference to the conditions, every individual is required to file a fresh application every year.
All, is never good, when it comes to taxation regulations and policies in India. Below mentioned are few limitations listed under GST composition scheme:
Any individual or dealer will not be eligible for taking credit of Input Tax Credit on all the purchases. Similarly, the buyers of all these registererd goods will not be able to get the credit of paid taxes.
Under the composition scheme regulations, the individual/dealer is not allowed to charge any tax from the buyer, in spite of having a low rate, which means he/she has to pay the tax from his/her own pocket. Following to this regulation, the individual/dealer is not allowed to issue any tax invoice which ultimately leads to a burden on the assessee.
The penal provisions under the composition levy scheme are quite severe which means that any individual who is planning to file under the said scheme has to be extremely careful.
The deadline to file for GST composition levy scheme is 31st March of every year. For example, the last date of filing GST composition scheme of FY 2019-2020 was 31st March 2019.