Composition Scheme in GST

[Kishan Barai]

What about minimum turn over requirement in GST for Composition Scheme ??

How to Practical apply for it , please guide step by step for gst.gov.in

[KASTURI SETHI]

Sh.Kishan Barai Ji,

If any registered person opts for Composition Scheme, that person will pay GST from Re.one.

Regarding step by step process to be followed, it is easily available on GST sites.

[Kishan Barai]

Thank You Sir Ji ,

But what is Min Max turnover limit for it for sale of Goods ??

[KASTURI SETHI]

Maximum limit ₹ 75 lakhs. If the registered person crosses ₹ 75 lakhs, he will be become a normal tax payer and file monthly returns and other returns regularly. Thereafter, he will have to maintain complete books of accounts. The person who opts for composition scheme is not eligible for threshold exemption of ₹ 20 lakhs. So he will start paying the amount @ 1% (dealers 2 % (manufaxcturer ) , 5 % for composite supply which is not recoverable from customer. So minimum limit is from the first day i.e. first transaction/sale/supply.

[Kishan Barai]

Thank You Very Much Sir for an Reply

But what is 1%, 2% & 5% at what stage supplier have to pay in composition Scheme & what entry has to made & where ?? Please explain all 3 above rates on composition Scheme

[MADAN RAHEJA]

The practical application of this scheme has been explained in FAQ on composition levy at CBEC website. Please visit - cbec.gov.in- home - GST - my GST for this purpose.

[DR.MARIAPPAN GOVINDARAJAN]

Section 10 of the CGST Act and SGST ACTprovide that the person opt for composition scheme shall pay as detailed below-

1. Manufacturers other than manufactures of such goods as may be notified by the government (ice cream, tobacco, pan masala, now notified by the Government) - CGST 1% + SGST 1% = 2%;

2. Restaurant service provider only - CGST 2.5% + SGST 2.5% = Total 5%;

3. Any other supplier eligible for composition of levy - CGST 0.5% + SGST 0.5% = 1%

AI Summary

Composition scheme in GST: simplified flat-rate levy for eligible small suppliers with turnover-based conversion to regular registration. Composition Scheme in GST allows eligible small taxpayers to pay a prescribed flat-rate levy from the first supply, subject to a turnover ceiling; exceeding that ceiling requires conversion to normal registration with full monthly returns and accounting. Persons opting for the scheme are not eligible for the separate threshold exemption. Different combined central and state flat levies apply by category (manufacturers with exclusions, restaurant services, and other suppliers), and the levy is not recoverable from customers; procedural FAQs are published on official GST portals.