Topic Name – What is the scope of composition scheme under GST
Small taxpayers with an aggregate turnover in a preceding financial year up to [Rs. 50 lakhs] shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover in a state during the year without the benefit of ITC. The floor rate of tax for CGST and SGST/UTGST shall not be less than [1% for manufacturer & 0.5% in other cases; 2.5% for specific services as mentioned in para 6(b) of Schedule II viz Serving of food or any other article for human consumption]. A tax payer opting for composition levy
shall not collect any tax from his customers.
The government may increase the above said limit of 50 lakhs rupees to up to one crore rupees, on the recommendation of GST Council.
Tax payers making inter- state supplies or making supplies through ecommerce operators who are required to collect tax at source shall not be eligible for composition scheme
Bihar Tax Consultant is among the best and experienced tax consultant in Bihar. Having the years of experience in handling corporate law matters rights from beginning. We provide our guidance on various issue of Company Law , GST Act , Income Tax Act and other corporate Area.
About Tabish Ahmad
Tabish Ahmad is an Advocate at Patna High Court works in the area of Corporate Law and Corporate Litigations. Tabish represented many clients in complex legal issues focusing on corporate compliance. As An Advocate it is the duty towards nations to make the citizen and businessmen aware about laws and compliances in order to comply as law abiding citizens.
Our Social Media Presence
https://www.facebook.com/bihartax
https://mobile.twitter.com/bihartax