Question 39: How is a manufacturer under the composition scheme required to bill his supply? Can a registered person, who purchases goods from a composition manufacturer take input tax credit? Answer: A manufacturer opting to pay tax under the composition scheme cannot issue a tax invoice to his buyer but would issue a Bill of… Read More »
Question : Can a person who has opted to pay tax under the composition scheme avail Input Tax Credit on his inward supplies? Answer: No, a taxable person opting to pay tax under the composition scheme is out of the credit chain. He cannot take input tax credit on the supplies received. GST on MSME… Read More »
Question : For the purpose of availing composition how will aggregate turnover be computed for the purpose of composition? Answer: Aggregate turnover shall be computed on the basis of turnover on all India basis. It includes aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a… Read More »
Question : A person availing composition scheme during a financial year crosses the turnover of Rs. 75 Lakhs / Rs. 50 Lakhs during the course of the year i.e. say, he crosses the turnover of Rs. 75 Lakhs/Rs. 50 Lakhs in December? Will he be allowed to pay tax under composition scheme for the remainder… Read More »
Question : When will a registered person have to pay tax? Answer: A registered person will have to pay GST on monthly basis on or before 20th of the succeeding month and if he has opted for composition levy he will have to pay GST on a quarterly basis on or before the 18th day… Read More »
Question : Are all manufacturers eligible for composition scheme? Answer: A manufacturer is eligible to avail composition scheme except manufacturers: (a) whose aggregate turnover in the preceding financial year crossed Rs. 75 lakhs; (b) who have purchased goods or services from unregistered suppliers unless they have paid GST on such goods or services on reverse… Read More »
Question : What is the rate of tax under Composition levy for a manufacturer? Answer: Composition rate for manufacturers is 2% (1% CGST and 1% SGST). 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… Read More »
Question : What is the form in which an intimation to pay tax under the composition scheme needs to be made by the taxable person? Answer: Composition scheme is optional and intimation that option has been availed should be made electronically in FORM GST CMP-01 by the migrating taxable person. A person who has already… Read More »
Question : What is the eligibility criteria for opting for composition levy? Which are the Special Category States in which the turnover limit for Composition Levy for CGST and SGST purpose shall be Rs. 50 lakhs? Answer: Composition scheme is a scheme for payment of GST available to small taxpayers whose aggregate turnover in the… Read More »
Question : Is there any scheme for payment of taxes under GST for small traders and manufacturers? Answer: Yes. Composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 75 lakhs (Rs.50 lakhs for special category States, excluding J&K and Uttrakhand). It is a kind… Read More »