Direct Tax Services
Audit
Consulting
ESG Advisory
Indirect Tax Services
RBI Services
SEBI Services
IRDA Registration
FEMA Advisory
Compliances
IBC Services
VCFO Services
Developed
Developing
BOTs
American
EU-1
EU-2
South East
South Asia
Gulf
ME
Select Your Location
The GST composition scheme has been introduced to minimize the compliance burden for small taxpayers. Small business owners have to focus on business instead of compliance; hence they may not be able to comply with the GST laws as a regular taxpayer. It is expected that the composition scheme will help SMEs and will ensure ease of doing business in India.
Table of Contents
Irrespective of the above mentioned numerous restrictions, Composition Scheme offers a lot of benefits to the taxpayer.
Following are the benefits of the composition scheme and this is the reason we recommend that SME[1] should register themselves under GST Composition scheme.
Thus, if you see in the above example, a taxpayer registered under the composition scheme and consumable goods to the consumer at a similar price is earning a higher profit and his tax liability is also lower.
Read our article:What is Composition Scheme Under GST Law
The composition supplier working under B2B Business model would not be able to pass the input received on the purchase of goods. He cannot raise a tax invoice and hence the GST cannot be collected from the purchaser. The composition scheme for B2B business would make them non-competitive. However, the composition scheme can be a good option for small details and would be right fit where there is a purchase from composition dealer and a sale to an end consumer.
It can be concluded that the composition scheme has a prospect of being the growth driver for small taxpayers who carry intrastate transactions.
Do you wish to register for GST? Or are you looking for a GST Implementation advisory? Would you like to know about the GST impact on your industry under GST? Please feel free to contact Enterslice, India’s leading online legal and tax advisory firm.
Read our article: Composition scheme under GST & Presumptive Taxation SchemeREAD What is Composition Scheme under GST?
NBFC must comply with both the RBI and the Companies Act 2013 requirements to operate. Even tho...
The Reserve Bank has issued guidelines to banks regarding matters relating to relief measures t...
The Reserve Bank of India, acting in accordance with the authority granted to it by Section 45...
Accounting Standard 22's main goal is to specify how income taxes should be treated in accounti...
Non-Banking Financial Organisations play a critical role in offering a variety of financial ser...
Are you human?: 1 + 3 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The introduction of the Goods and Service Tax (GST) is a revolutionary step taken by the Indian Government to creat...
05 Jan, 2021
In this article, we are talking about GST registration for Ecommerce collecting TCS. This means that the tax collec...
22 Jan, 2021
Chat on Whatsapp
Hey I'm Suman. Let's Talk!