TaxTMI 
TaxTMI 
Composition Levy
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....her manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. 5% ( 2.5% CGST plus 2.5% SGST) of the turnover in the State/UT 3 Any other supplier eligible for composition levy under the composition scheme and the composition rules 1% ( 0.5% CGST plus 0.5% SGST) of the turnover of taxable supplies of goods in the State/UT Thus, in respect of traders, value of exempt supplies shall not be counted for calculating the turnover. The tax shall be levied @1% of the turnover of the taxable supplies of goods Q 19. What is the eligibility category 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 ₹ 75 lakh? Ans. Composition scheme is a scheme for payment of GST available to small taxpayers whose turnover in the preceding financial year did not cross Rs. One crore. In the case of following 9 states, the limit of turnover is ₹ 75 Lakhs in the preceding financial year. a) Arunacha....
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....pt for provider of restaurant services. However, a new proviso has been added as per the recent CGST (Amendment) Act, 2018 in order to allow them to be eligible for the scheme even if they supply services of value not exceeding 10% of the turnover in the preceding financial year in a State/Union territory or ₹ 5 lakhs, whichever is higher. Thus, a person who opts to pay tax under composition scheme will be allowed from a date to be notified to supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher. It is reiterated that the notification for date of implementation of the amendment Act is yet to be issued. Q 22. When will a person opting for composition levy pay tax? Ans. A person opting for composition levy will have to pay on quarterly basis before 18th of the month succeeding the quarter relating to supplies. Q 23. A person availing composition scheme during a financial year crosses the turnover of ₹ 100 Lakhs/75 Lakhs during the course of the year i.e. say he crosses the turnov....
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....ition scheme issue a tax invoice under GST? Ans. No. Q 28. Is monthly return required to be filed by the person opting to pay tax under the composition scheme? Ans. No. Such persons need to file quarterly returns in Form GSTR-4. The GSTR-4 needs to be filed electronically on the common portal by the 18th day of the month succeeding the quarter relating to the supplies. Q 29. What are the basic information that need to be furnished in GSTR 4? Ans. It should contain details of turnover in the State or Union territory, inward supplies of goods or services or both and tax payable. The basic information that need to be furnished in FORM GSTR-4 includes aggregate turnover, details of inward supplies including supplies on which tax is to be paid on reverse charge, tax on outward supplies made, Statement of Advances etc. Serial 4A of Table 4 requires the composition dealer to furnish details of inward supplies received from a registered supplier (other than supplies attracting reverse charge). It has been prescribed, vide notification No. 30/2018- Central tax dated 30.10.2018, that the information in this Table is not required to be furnished. Q 30. How to fill the GSTR-4 form....
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.... collect any tax from the appointed day but shall issue bill of supply for supplies made after the said day. Q 36. What are the other compliances which a provisionally registered person opting to pay tax under the composition levy need to make? Ans. Such persons have to furnish the details of stock, including the inward supply of goods received from unregistered persons, held by him on the day preceding the date from which he opts to pay tax under the said section, electronically, in FORM GST CMP-03, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within a period of ninety days from the date on which the option for composition levy is exercised or within such further period as may be extended by the Commissioner in this behalf. Q 37. Can a person making application for fresh registration under GST opt for composition levy at the time of making application for registration? Ans. Yes. Such persons may give an option to pay tax under section 10 in Part B of FORM GST REG-01, which shall be considered as an intimation to pay tax under the said section. Q 38. Can the option to pay tax under composition levy be exercised at any tim....
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....other state? Ans. No. Any intimation under sub-rule (1) or sub-rule (3) of Rule 3 of the CGST Rules, 2017 in respect of any place of business in any State or Union territory shall be deemed to be an intimation in respect of all other places of business registered on the same Permanent Account Number. Q 42. What is the effective date of composition levy? Ans. There can be three situations: Situation Effective date of composition levy Persons who have been granted provisional registration and who opt for composition levy (Intimation is filed under Rule 3(1)) The appointed date i.e 1st July, 2017 Persons opting for composition levy at the time of making application for new registration in the same registration application itself (The intimation under Rule 3(2)) Effective date of registration; Intimation shall be considered only after the grant of registration and his option to pay tax under section 10 shall be effective from the effective date registration. of Persons opting for composition after obtaining registration (The intimation is filed under Rule 3(3)) The beginning of financial year the Q 43. What are the conditions and restrictions subject to wh....