Who can opt for composition Scheme under GST

Composition Scheme under GST

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u Businesses with annual turnover up to Rs 1.5 crore can opt for composition scheme. Turnover of all businesses with the same PAN has to be added up to calculate turnover for the purpose of the composition scheme. 

u Only Manufacturers of goods, Dealers, and Restaurants (not serving alcohol) can opt for the composition scheme under Section 10. However, service providers can opt into a similar scheme for composition dealers notified by the CGST (Rate) notification no. 2/2019

Type of Business

CGST

SGST

Total

Manufacturers and Traders (Goods)

0.5%

0.5%

1%

Restaurants not serving Alcohol

2.5%

2.5%

5%

Service Providers

3%

3%

6%

 

Further, following people cannot opt for the composite scheme:

·         Manufacturer of ice cream, pan masala, or tobacco

·          Inter-state supplies

·         A casual taxable person or a non-resident taxable person

u Composite supplier will issued bill of supply and also should  mention “Composition taxable person, not eligible to collect tax on supplies”

u No Input tax credit can be claimed, however composite supplier will be liable to pay tax on reverse charge transactions.

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