Comparison Of Composition Schemes

Composition for goods manufacturer or trader SECTION 10

Composition scheme for Restaurants

SECTION 10

Composition scheme  ( mainly for service providers )

Who can apply?

Exclusive Goods manufacturer or trader including Manufacturer or trader who supply services to extent of 10% of T/O or 5 lacs . whichever is higher

Restaurants not serving alcohol

Notification No. 2/2019-Central Tax (Rate) issued To give composition scheme for

supplier of services or  provider of  Goods+ service both as bundled supply

for service provider

Who cannot?

Person dealing in

1.      Goods on which GST not laviable e.g. petrol, diesel, Gas., Alcohol

2.      Person supplying exempted goods only

3.      Person supply of service

4.      Person engaged in making any supply through an electronic commerce operator

5.      Non-resident taxable person or  a casual person

6.      Producer of ice cream , Pan masala, tobacco , tobacco substitutes

7.      Person making interstate outward supply.

Person dealing in

1.      Goods on which GST not laviable e.g. petrol, diesel, Gas. Alcohol

2.      Person supplying exempted goods only

3.      Person supply of service

4.      Person engaged in making any supply through an electronic commerce operator

5.       Non-resident taxable person or a casual person

6.      Producer of ice cream, Pan masala, tobacco, tobacco substitutes

7.      Person making interstate outward supply.

Person dealing in

1.      Goods on which GST not laviable e.g. petrol, diesel, Gas. Alcohol

2.      Person supplying exempted goods only

3.      Person supply of service

4.      Person engaged in making any supply through an electronic commerce operator

5.      Nonresident taxable person or a casual person

6.      Producer of ice cream, Pan masala, tobacco, tobacco substitutes

7.      Person making interstate outward supply.

8.      Who has already opted composition scheme u/s 10

Turnover limit

·         New registered who has yet not crossed 1.5 Cr. in current FY

·         Already registered who has T/O less than 1.5 Cr. in previous FY

·         New registered who has yet not crossed 1.5 Cr. in current FY

·         Already registered who has T/O less than 1.5 Cr. in previous FY

·         New registered who has yet not crossed 50 lac in current FY

·         Already registered who has T/O less than 50 lac in previous FY

Rate

Manufacturer à

1% on total T/O

Trader à

1% (only on taxable supply)

5%

6%

Do’s & Don’ts

1.      He has to pay tax U/S 9(3) – RCM

2.      He cannot claim ITC.

3.      Apply from 1^st march to 31^st march i.e before financial year starts

4.      File ITC- 3 in 60 days once applied in CMP-02

5.      Issue “Bill Of Supply”

6.      He cannot sale O/S state

7.      Display of invoices of the words ” composition taxable person, not eligible to collect tax on supplies”

8.      Display of the words “Composition Taxable Person” on every notice and signboard displayed at a prominent place.

1.      He has to pay tax U/S 9(3) – RCM

2.      He cannot claim ITC.

3.      Apply from 1^st march to 31^st march i.e before financial year starts

4.      File ITC- 3 in 60 days once applied in CMP-02

5.      Issue “Bill Of Supply”

6.      He cannot sale O/S state

7.      Display of invoices of the words ” composition taxable person, not eligible to collect tax on supplies”

8.      Display of the words “Composition Taxable Person” on every notice and signboard displayed at a prominent place

1.      He has to pay tax U/S 9(3) – RCM

2.      He cannot claim ITC.

3.      Apply from 1^st march to 31^st march i.e before financial year starts

4.      File ITC- 3 in 60 days once applied in CMP-02

5.      Issue “Bill Of Supply”

6.      He cannot sale O/S state

7.      Display of invoices of the words ” composition taxable person, not eligible to collect tax on supplies”

8.      Display of the words “Composition Taxable Person” on every notice and signboard displayed at a prominent place

Returns

GSTR -4 Quaterly

GSTR -4 Quaterly

Yet not prescribed

What if T/O limit is crossed in current FY

After crossing 1.5 Cr. T/O limit in current FY, he should convert to normal registration

After crossing 1.5 Cr. T/O limit in current FY, he should convert to normal registration

·         This scheme is for only upto first supply of Rs. 50 lac

·         After crossing 1.5 Cr. T/O limit in current FY, he should convert to normal registration