Question : Does a registered person under the composition scheme pay his taxes every month? Answer: No, registered person under the composition scheme will not pay taxes every month. He would file return and pay taxes on a quarterly basis i.e. for each quarter of the financial year. Due date for payment of tax for… Read More »
Question : How can tax payments be made by a registered person under the composition scheme? Answer: A registered person under composition scheme would not have input tax credit and he would make all his tax payments by debit in the electronic cash ledger maintained at the common portal. The taxpayer can deposit cash anytime… Read More »
Question : Can a manufacturer under composition scheme do job-work for other manufacturers? Answer: Job-work is a supply of service and not eligible for composition scheme. Any manufacturer or processor who wishes to carry out job-work for others would not be eligible for composition scheme. GST on MSME : FAQ’s GST on Textile : FAQ’s… Read More »
Question : Can a person paying tax under composition scheme make exports or supply goods to SEZ? Answer: No, because exports and supplies to SEZ from Domestic Tariff Area are treated as inter-State supply. A person paying tax under composition scheme cannot make inter-State outward supply of goods. GST on MSME : FAQ’s GST on… Read More »
Question : Will withdrawal intimation ( For Composition Levy ) in any one place be applicable to all places of business? Answer: Yes. Any intimation or application for withdrawal in respect of any place of business in any State or Union territory, shall be deemed to be an intimation for withdrawal in respect of all… Read More »
Question : Can a person paying tax under composition levy, withdraw voluntarily from the scheme? Answer: Yes, the registered person who intends to withdraw from the composition scheme can file a duly signed or verified application in FORM GST CMP-04. In case he wants to claim input tax credit on the stock of inputs and… Read More »
Question : What are the other compliances which a provisionally registered person opting to pay tax under the composition levy need to make? Answer: Such person is required to furnish the details of stock, including the inward supply of goods received from unregistered persons, held by him on the 30th day of June, 2017 electronically,… Read More »
Question : What is the validity of composition levy? Answer: The option exercised by a registered person to pay tax under the composition scheme shall remain valid so long as he satisfies all the conditions specified in the law. The option is not required to be renewed. GST on MSME : FAQ’s GST on… Read More »
Question : What is the effective date of composition levy? Answer: There can be three situations with respective effective dates as shown below: GST on MSME : FAQ’s GST on Textile : FAQ’s GST on Export : FAQ’s GSTIN / PAN and Invoice information in Shipping Bill Bond or LUT along with Shipping Bill Drawback… Read More »
Question : In case a person has registration in multiple States, can he opt for payment of tax under composition levy only in one State and not in other States? Answer: No. An intimation that composition scheme has been availed in one State shall be deemed to be an intimation in respect of all other… Read More »