TaxTMI 
TaxTMI 
TaxTMI 
Comparision of Normal Dealer & Composition Dealer Under GST | |||||
NORMAL REGISTERED DEALER | |||||
5% | 12% | 18% | 28% | ||
COLLECTED FROM CUTOMER | 1,00,000.00 | 1,00,000.00 | 1,00,000.00 | 1,00,000.00 | |
GST | 4,761.90 | 10,714.29 | 15,254.24 | 21,875.00 | |
(A) | SELLING PRICE | 95,238.10 | 89,285.71 | 84,745.76 | 78,125.00 |
(B) | PURCHASE PRICE | 70,000.00 | 70,000.00 | 70,000.00 | 70,000.00 |
GST PAID ON PURCHASE | 3,500.00 | 8,400.00 | 12,600.00 | 19,600.00 | |
NET AMOUNT PAID | 73,500.00 | 78,400.00 | 82,600.00 | 89,600.00 | |
(A-B) | NET INCOME | 25,238.10 | 19,285.71 | 14,745.76 | 8,125.00 |
COMPOSITION DEALER | |||||
5% | 12% | 18% | 28% | ||
COLLECTED FROM CUTOMER | 1,00,000.00 | 1,00,000.00 | 1,00,000.00 | 1,00,000.00 | |
990.10 | 990.10 | 990.10 | 990.10 | ||
(A) | NET RECIEVED | 99,009.90 | 99,009.90 | 99,009.90 | 99,009.90 |
PURCHASE PRICE | 70,000.00 | 70,000.00 | 70,000.00 | 70,000.00 | |
GST PAID ON PURCHASE | 3,500.00 | 8,400.00 | 12,600.00 | 19,600.00 | |
(B) | NET AMOUNT PAID | 73,500.00 | 78,400.00 | 82,600.00 | 89,600.00 |
(A-B) | NET INCOME | 25,509.90 | 20,609.90 | 16,409.90 | 9,409.90 |
Difference in Income (benefit to composition dealer) | 271.81 | 1,324.19 | 1,664.14 | 1,284.90 | |
Notes
1 Composition also requires quarterly returns in GSTR-4 to be filed and one annual return in GSTR-9A. GSTR-4 is to be filed upto 18th of the month following the qaurter.GSTR-9 is to be filed upto 31st December of next financial year.
2 Cash sales of upto ₹ 200 can be clubbed together as one on daily basis. However bill should be raised where the cutomer so demands
3 Traders are to pay tax @0.5% CGST, 0.5% SGST .
4 Purchase from unregistered dealers can be made upto ₹ 5000/- per day in aggregate without any liability to be registered.
5 A dealer registered under composition scheme is not required to maintain detailed records as in the case of a normal taxpayer.
6 A Composition Dealer is not allowed to avail input tax credit of GST paid to their supplier.
7 Since a Composition Dealer is not allowed to avail input tax credit, such a dealer cannot issue a tax invoice as well. A buyer from composition dealer will not be able to claim input tax on such goods.
8 A Composition Dealer is not allowed to collect composition tax from the buyer.
9 Any dealer whose aggregate turnover in a financial year does not exceed ₹ 75 Lakh can opt for composition scheme.
10 Composition Scheme is available only for intra-state supplies. If a dealer is involved in inter-State supplies, then he cannot opt for the scheme.
11 No HSN Codes are required to be mentioned on the Invoices.