GST composition scheme was implemented under the respective State VAT Laws with conditions applied on eligibility for the scheme accordingly. GST composition scheme assures greater compliance without the requirement of maintaining records. This system is missing in Service Tax laws.
Latest Update
13th October 2022
- The ICAI has shared the second edition of the handbook on the composition scheme for Chartered Accountants. Read PDF
09th July 2022
- The important message for some composition taxpayers regarding the negative balance removal is that the process has been completed by the government. read more
09th May 2022
- The Maharashtra Authority of Advance Ruling (AAR) has issued the order for the M/s. KPC Projects Ltd. In the order, Shri T.R.Ramnani and other members said the 18% GST has to be paid for the composite supply of construction hospital works. Read More
GST Software Demo for Composite Taxpayers
32nd Council GST Meeting for Composition Traders
- The annual turnover limit increased by GST council to 1.50 Crores, effectively from 1 April 2019
- Annual filing of GSTR 4 return instead of quarterly. Also, tax is paid to be deposited on a quarterly basis.
- 6 percent GST rate applicable to the Composition scheme for service providers and turnover up to 50 lakh per annum
Note:
- The above amendments shall be applied after the official government notification.
- More: 32nd GST Council Meeting Updates for Composition Traders
Every taxation system has some prescribed rules or regulations which must be followed by individuals, taxpayer or business owners. Maintaining records properly, submission or filing returns timely, simplified generation, and periodic payment of taxes are some of the essential elements of the taxation system for corporate taxpayers. However, business enterprises and owners are facing difficulties to cooperate with such responsibilities of law. It happens just because of a lack of knowledge and the majority of people is not aware of the taxation system.
In 28th GST council meeting, the FM has decided to extend the threshold limit of composition scheme taxpayers from 1 crore to 1.5 crores. Also, included the 10% provision of normal taxpayer annual turnover within the composition scheme if in case the given 10 percent is provided as the service.
Key Features of GST Composition Scheme
Eligibility: – Everyone is not eligible to register under the GST composition scheme. Taxpayers or people whose annual turnover is up to INR 1.5 crore in a financial year. Turnover for special category States, except Jammu & Kashmir and Uttarakhand, the limit is now increased to Rs 75 Lacs. While the turnover threshold for Jammu & Kashmir and Uttarakhand will be Rs 1 crore must register under the GST composition scheme. The small traders should fill up GST CMP-01 form to accept the scheme.
Special Eligibility:- The GST council has included normal taxpayers within the composition scheme in case 10% of annual turnover is provided as a service.
Quarterly Filing Returns: – Instead of submitting returns 3 – 4 times in a month, taxable persons or registered taxpayers will be required to submit or filing tax returns only one time in every quarter under the GST composition scheme.
Intra- State Supplies: – Local suppliers, who supply goods or services within a state can take advantage of the GST composition scheme. Inter-state suppliers will come under the regular GST laws.
Bill of supply, not tax invoice: – Registered taxpayers under the GST composition scheme will be required to show the bill of supply instead of tax invoice to the tax authorities. A person paying taxes under the composition scheme can issue a bill of supply instead of an invoice. Exemptions up to 5 lakhs for services under the composition scheme are also available.
Not Eligible for Input Tax Credit: – According to section 16, goods and services on which composition tax has already been paid (under section 8) do not apply for Input Tax Credit.
Tax Rate: – Manufacturers – 1% ( .5% central and .5% state), Restaurants services – 5% ( 2.5% central and 2.5 state ), Composition levy eligible – 1% ( 0.5% central and 0.5% state )
GST Only on Taxable supplies: – Earlier it was a provision to pay composition GST even on the exempted goods but now after 1st January 2018, the GST will be only payable on the taxable goods.
Penalty: – If the taxable person is not eligible for the GST composition scheme, then the tax authorities can charge a penalty equal to the amount of tax on such person along with his tax liability. Be careful when availing of this scheme and paying taxes. The penalty will be imposed according to the provision of section 73 or 74 if an individual represents incorrect data under the composition scheme.
Voluntary Registrations: – For availing of the benefits of this scheme, taxpayers need to make voluntary registration. If in case, the taxpayer’s annual income turnover exceeds 75 lakh then he will be transferred to the regular scheme. Taxpayers who are already a part of VAT composition need to voluntarily register under this scheme.
Note: The eligibility and service supply exemption is under review after the 23rd GST Council meeting
Highly Recommended: GST Forms: Return Filing, Rule, Registration, Challan, Refund, Invoice
Registration Procedure Under the Composition Scheme
Registered or existing taxpayers not under the Composition Scheme may prefer to opt for it (subject to being qualified), only from the beginning of the next financial year. Tax returns to be filed on as or before 31 March of the previous year.
If in case dealers want to switch to the normal scheme, during the year, they may be allowed to do it. Although, they are not able to switch over to the Composition scheme again within the same Financial Year
Filing Returns Under the GST Composition Scheme
Individuals or registered taxpayers can pay tax under the provisions of Composition Scheme shall provide a return in an official form and official manner within the eighteen days after the end of the relevant quarter.
GST CMP 08 form has been officially declared by the government for depositing payment quarterly under the Composition Scheme.
FAQs on GST Composition Scheme
Q.1 Can a composition dealer purchase goods from an inter-state supplier?
Yes, of course, a person who has opted for composition scheme can procure goods from an inter-state supplier without any restrictions
Q.2 What are the specified composition rates?
Composition rate is uniform for dealers & manufacturers at 1% ( 0.5% Central tax plus 0.5% State tax). Composition rate for Restaurant Services is 5% (2.5% Central tax plus 2.5% SGST) of the turnover. Composition rate for service providers is 3%
Q.3 Is it mandatory for a Composition Dealer to maintain detailed records?
No, it is not mandatory for a registered Composition dealer to maintain detailed records as needed by a normal taxpayer.
Q.4 Is a Composition Dealers allowed to avail Input Tax Credit?
No, Composition dealer is not allowed to avail Input Tax Credit. A taxpayer who opts to pay tax under the composition scheme cannot take credit on his input supplies
Q.5 Is composition dealer responsible to pay both, the Reverse charge and a fixed percentage of normal GST which he is supposed to pay?
If the reverse charge is applicable on a specific supply then the composition dealer is liable to pay GST under reverse charge as a recipient of supply at standard GST rates
Q.6 Can the service provider go for the Composition Scheme?
Yes, Composition scheme for services has been introduced with an initial limit of Rs 50 Lakh, taxable at 6%, beginning from April 1, 2019
Q.7 Can a person avail ITC on the stock after being denied to pay tax under composition from an authorised officer?
Yes a person can still avail ITC by filing a statement in FORM GST ITC-01 (containing details of input stocks along with the inputs contained in semi-finished or finished goods present in stock) on the date on which the option is refused as per order in FORM GST CMP07, within a period of thirty days from the order
Q.8 When does an individual who opted for composition, pay tax?
An individual who opted for composition pays tax on a quarterly basis prior to the 18th* of the subsequent month of the quarter during which the supplies were made (changeable by the government notification)
Q.9 Can a Composition Dealer issue Tax Invoices?
No, a Composition Dealer can not issue a tax invoice because he has to pay the tax out of his own pocket and he is not permitted to recover the same from the customers. He is bind to issue Bill of Supply
Q.10 What are the different types of returns, a Composition Dealer has to file?
A Composition Dealer has to file one return i.e. GSTR-4 on an annual basis, CMP 08 on a quarterly basis.
Q.11 Can a Composition Dealer collect tax from customers?
No, a Composition Dealer has to pay taxes from his own sources and he is not eligible to recover the composition tax from the buyer
Q.12 Can an interstate supplier opt for Composition Scheme?
An interstate supplier can not opt for Composition Scheme as it is available only for dealers imbibed in intra-state supplies
Q.13 How is availed input credit treated when one switch on to Composition Scheme from the normal scheme?
In such a case when a person switches on to composition scheme from normal scheme, he/ she becomes accountable to pay an amount equal to the credit of input tax in terms of inputs present in stock on the day instantly after the date of the switchover. The remaining balance of input tax credit in the credit ledger after payment of such amount will be treated inconsiderable
Q.14 Can I choose for Composition Scheme in one year and flip flop in the later year?
Yes, You are allowed to switch between the Composition Scheme and the normal scheme on the basis of your turnover. The same switchover can be declared on the GST Portal. However, this flip flop comes along with alterations in the way you issue invoices and file your returns
Q.15 Is the alternative to pay tax under composition practicable at any time of the year?
No, the tax under composition cannot be paid at any time of the year. A registered taxpayer is supposed to provide a declaration on the GST Portal in FORM GST CMP-02 prior to the beginning of every financial year
Sir, I am a service provider, providing management consultancy services to my clients. My turnover is about 36-45 Lakhs per annum (under 50 Lakhs). Under the new provisions can I opt for GST composition scheme? If so should I charge 6% GST on all my invoices as some are exempt from GST as they as for overseas clients and considered “export of services”? Kindly advice.
Yes, you can opt-in for composition scheme and can charge 6% GST on all invoices if notification in this regard is published.
Thank you, Sir. Do I have to pay 6% on the “export of services” invoice value also or only on those where service is provided to Indian companies?
There is still not such clarification provided in this regard as only word service has been mentioned there.
I am a technical graduate and provide repair and maintenance of electric motors used in export houses. Can I get registered myself in composition scheme? if yes, what would be GST rate?
Since you are engaged in providing services as of now you cannot opt for composition scheme but as per recent meeting if notification will be issued allowing service providers to opt for composition scheme then you will be eligible.
Hello Sir, I am a manufacturer of ladies garments. I sell my products all over India. what % of tax charges should I pay? MY TURNOVER IS 60 LAKHS
If you opt for composition scheme then you have to pay tax at 1% of turnover and if you opt for regular scheme then you have to pay tax as per rate the item you dealt with.
Since you are supplying all over India, hence you are engaged in interstate supply and hence not eligible for composition scheme. You have to pay GST @5% if apparel is below Rs.1000 however if taxable value is more than 1000 then 12% GST is to be paid. Please consult professionals before acting on any advice.
Yes, agreed.
Sir, I want in the regular scheme in Aug and Sept 2017 after that from Oct 2017 changed to composition scheme. Now kindly Help For Annual Return what I Should file 9 of 9A.
You should file both as of now as there is no clarification yet in this regard.
SIR, I AM A RICE MERCHANT AND I AM IN A COMPO SCHEME. FOR RICE IT IS 0 %. SO I FILED NIL RETURN FROM APRIL TO JUNE AND JULY TO SEPTEMBER. IS IT COMPULSORY TO ENTER THE PURCHASE DETAILS IN INWARD SUPPLIES BOX AS IT has ALREADY ARRIVED IN THE AUTO POPULATED BOX.
No purchase details are not mandatory to be filled in GSTR-4 as per latest Govt. directions.
Sir, I am Composition Scheme dealer my turnover for quarterly is up to 300000 should I have to pay tax for the quarterly as my annual turnover is less than 20 lakhs.
If your turnover is less than Rs. 20 lakhs then you are not required to register under GST and pay tax.
Sir, I am composition dealer and my turnover has been exceeding from 1 Crore and Now as on 11 Jan 2019. I am switching over to the composition to the regular dealer is it right?
Because of i am understanding that the composition limit is 1.50 Crore it is decided as on 23rd GST council meeting
Sir,
I am composition dealer and my turnover has been reached 1.40 Crore. still, we can continue with composition scheme? Or can we convert automatically into the regular GST scheme? and what is the process of change?
You will not be converted automatically, you have to opt out of composition scheme from the menu services provided on GST portal to switch to regular scheme.
Dear Sir
I had already crossed the sales of 1.48 cr under the composition scheme. My first 2 quarter sales are 60 lacks and third quarter sales is 90 lacks. Then what is the actual effect of the tax rate for current return files?
Can we paid 1 % on 90 lacks or pay regular on excess off 1 crore.
Please reply.
Till you are registered as composition dealer you have to pay tax as per composition rates i.e. 1%. As and when you cross Rs. 1 crore then opt-in as the regular dealer and then pay tax as per the regular scheme.
Hello – I am a restaurant owner who is under composition scheme. As part of my sales, I sell MRP items also like Cold Drinks and Ice Creams At MRP. For procuring these, I am paying GST to my supplier (distributor). When filing for my GST, does my turnover include the sale of these MRP articles also or not?
Secondly – At what stage does one need to transfer over to normal GST as one’s revenue approaches the threshold limit?
Yes, these items are also part of your turnover. As and when your turnover exceeds the threshold limit of Rs. 1 crore you need to opt for the normal scheme.
But Sir my turnover reached up to 1.30 crore as on 10 Dec 18, and I am switched over composition to regular as on 11 Jan 18?
It’s fine as file GSTR-4 up to that period and pay tax.
SIR, I AM A RICE MERCHANT AND I AM IN A COMPO SCHEME. FOR RICE IT IS 0 %. SO I FILED NIL RETURN FROM APRIL TO JUNE AND JULY TO SEPTEMBER. DO I HAVE TO SHOW SALES AND PAY TAX?
Yes, you have to show sales but in 0% tax rate where you have to show only sales amount and not tax as rice is exempt.
Hi Sir,
Can you help on this?
I am a regular manufacturer with turnover of less than 75 lakhs per year paying 6% CGST and 6% SGST every month on the goods sold. I am selling my products to the local trader(within the state) who will purchase the product from me and sells to other states. Can I change for composition-scheme for this kind of situation where my buyer is in the local market and buyers sell to other states?
Yes, you can opt for composition since you are making intra-state sale to the local trader. In the case of inter-state sale, composition scheme cannot opt.
Sir,
We opted for composition scheme from Dec 2017. (From July to nov 17 it was Regular with quarterly option). Please clarifies the full.
1. For Oct and nov 17 do we have to file GSTR1 in nov17? For oct 17 there is no option open for GSTR 1 but for nov 17 the option for GSTR 1 is open on the GSTN site(Dec 17 onwards we have switched to composition)
2. We have not filled the ITC- 03 till date . Do we need to file stock details and pay input tax in ITC-03 as it is the middle of the year when we opted for composition?
3. We have around 30000/- lying in ITC credit in GST. Will this amt get lapsed or can we offset this amt in ITC-03(in case we need to pay)
Kindly clarify.
(1) Yes, you have to file quarterly GSTR-1 in Nov 2017 even if you opted for composition
(2) Yes, you have to file ITC-03 even in the middle
(3) You don’t need to pay any amount in ITC-03. such amount will be lapsed
Wrong GST rates mentioned in Article
Which rate is wrong
Hello Sir,
While Creating E Waybill I am trying to find an option 0.5% and 0.5% in e waybill website. Now in the new update, they made it drop down and there is no option of 1%! So what should we select to create a waybill with 1%?
Did the government increase to sales to 1.5crores?
Thanks in advance
Vishnu!
There is no rate of 1% in CGST Act, 2017 for tax payment. Therefore, the same cannot be provided
Hello, we are registered under composite tax form and cannot find a 1% tax rate. Now can you please tell me which website I need to login to create E waybill for composite tax?
E-way bill is to be prepared on the rate of goods applicable, on which they are purchased/sold in the ordinary course of business, not on basis of composite tax rates.
if a regular taxpayer is dealing with a composition dealer does he have to mention it while filling GSTR 1
There is no need to mention it separately. Just file entries like normal taxpayer.
Hi,
I am registered under the Composite scheme. In FY 17-18 I have intra state supplies from Jan’18. Please help how to go about them.
File GSTR-4 quarterly from the date you have taken registration showing intra state supplies and pay tax accordingly.
Hi,
I am Regular based Seller in Mumbai, I sold material to GOA who is actually Registered as Regular but I wrongly selected him as composition and filed both gstr3b and GSTR-1 as the composition for that party instead of regular. Now please advise what difference it will make? how to rectify it.?
In GSTR-1 there is no such option to select dealer as regular or composition, if you have done an entry in B2B section by selecting GST No. then an entry is done only as regular. In GSTR-3B if an entry is done in composition then rectify it in next period return.
Dear Sir,
My client registered under Composition Scheme. now he gets Rental income yearly 2 Lacs from commercial property. As per the notification issued by Govt. 10% of turnover or 5 Lacs whichever is higher is eligible for composition scheme.
My Querry is what rate of Tax applicable in case of Rental Income…??
Such notification is not issued by Govt. yet as it is only decided in the meeting of GST council. As such at present for person availing composition scheme rental income shall be taxable @18%.
Dear Sir,
When will the new composition scheme option will be enabled for firms with turnover up to 1.5 Cr?
As soon as Govt will notify the same and notification in this regard shall be issued.
We are into database services and it is a Pvt Ltd. Company turn over is less than 60 Lakhs currently filing monthly returns would like to know if we can opt for composition scheme. Can we file our returns quarterly?
Composition Scheme is not available for service provider except Restaurant or Caterers. You are into database services you cannot eligible for composition scheme. You have to follow Regular Procedures only.
Yes, rightly said
in q1 2018-19 purchase detail is given or not
As of now, there is no such circular issued in this regard, so you need to give details of purchases in GSTR-4.
Dear Sir,
I am selling food grains item exempted from GST but I am purchasing packing material[empty bags] for packing of food grains please advice me. Should I claim input tax of packing material?
with thanks
No ITC can be claimed on the purchase of materials which are used for exempt supplies.
DEAR SIR,
I AM A ACCOUNTANT.I MENTION PARTY BOOKS ACCOUNT. HE HIS KNOW REGULAR GST. BUT 1 APRIL 18 TO PARTY GO TO LUMSUM SCHEME WHO APPLICATION WHO DAY TO APPLICABLE. SUGGEST ME.
KAUSHIK GAJJAR
I am a retailer of medicines and my turn over is less than 50 lakhs/ year. unknowingly I opted for regular GST and filed the returns for July-17. My consultant who was not much familiar with the new system and computers discontinued his services my returns from Aug till date is pending now. And also I understood that the composite tax is more beneficial for me. Now April onwards I want to migrate to composite tax option. So what is the procedure for doing it? And what kind of services can be done below 5 lakhs limit under composite tax ?please reply
You need to file CMP-02 for opting the composition scheme option, and you have to file the returns as per regular taxpayer until the month of filing CMP-02. All the services are covered under that limit.
Sir, The CGST Act says that supplier of service other than the supplier of food articles is not eligible to register under composition scheme section 10(2). What does this actually mean?
It means only persons providing restaurant services can opt for composition scheme. Other service providers cannot opt for composition scheme. They have to pay tax under the regular scheme.
Q1. Mr A, a manufacturer is having a turnover of Rs. 60 lakhs in the financial year 2016-17. Can He avail the benefit of composite levy scheme under GST in the year 2017-18? How much is the tax required to be paid if the aggregate turnover in 2017-18 supposing Rs.45 lakhs?
Yes, composition scheme can be availed by the person whose aggregate turnover in the preceding or current fiscal year does not exceed Rs. 1 crore. So in 2017-18 composition scheme can be availed. For this in case of traders tax at the rate of .5% of turnover to be paid in 2017-18.
How to Opt for composition for FY 2018-19? At present registered as the regular taxpayer. From 1-4-18 want to convert to the composition. what is the procedure? How to provide stock details? suppose if the assessee does not maintain stock records how to fill form regarding stock?
Thanking You
For converting into composition scheme, you have to file CMP-02 and have to pay the ITC on closing stock.
Hi, If I have to switch composition scheme from regular taxpayer w.e.f 1st April 2018 when should I file form CMP 02 and where should the closing stock be declared and should the tax be paid? Can you please guide on the process/steps involved?
Composition scheme would be applied from the next month of the month in which you have filed CMP-02.
Sir, I am a retailer selling shawls home furnishing etc. our turnover for the year 16-17 was around 40 lakhs. since we buy our stock from different parts of the country and my consultant was not sure if I can opt for composition scheme on 1st July 2017. so we opted for the regular taxpayer and paid taxes as the regular taxpayer from 1st July 2017 to 31st March 2018. I opted for composition scheme on the 131st march, 2018. I had purchased stocks during the year on which I had availed ITC of Rs 23000. I was trying to repay it but when we open the site and fill in the details, it does not accept the form with a message” this is not applicable to you”. how do we pay the ITC back to Govt?
Either your request for conversion under composition scheme will be under process or you can contact to department.
Can assesses allow registration under the same pan with both scheme composition and regular?
Composition scheme is applied on PAN basis and for all the business verticals of assessee. It’s not possible to opt composition scheme for one business vertical and regular for other.
If my expected turnover is between 1 cr to 1.5 cr, can I opt for composition scheme?
As per decisions are taken under GST council meeting, turnover threshold for composition scheme has been raised to 1.5 cr but the notification for application of that provision is not issued by CBEC yet, so till the time, any official notification will be released by dept. t/o threshold will be 1cr.
Sir. A very personal request. Can anyone who is expert in this area like you are, contact CBEC either personally or through email and ask them for clarification on the notification and if not yet done, request them to notify it. Thousands, if not lakhs of businesses are dependent on it. We are not sure where to go and whom to ask about it as no one knows anything about it.
It totally depends on the official part so any personal queries will not be entertained by dept. So you have to wait till the time dept. considers it.
My annual trade turnover is less than 50 lakhs. I also have rental income from commercial property. As the composition scheme dealer can have services allowed up to rs. 5 lakhs, Can I earn income through renting of commercial property?
Same is my case, you got answer for your query, please share with me, any notification if you got
As such, there is no clarification given by CBEC that what services are covered under the specified limit of 5 lacs, so all services deemed to be included and thus allowed.
Hello sir. I just want to know, is the 1.5 Crore turnover limit raised is official now. I heard changes to GST amendments requires parliament approval, is it true. If yes then I have not heard parliament discussing it. Can GST counsel itself raise the limit and amend it. The reason I am saying is that I’m still not seeing any notifications for the limit raised.
Also, the GST profile page does not allow us to click on the opt for the composite scheme – not clickable, but the form to opt the scheme is however accessible from the registration page. Any reason so.
Our retail business turnover is above 1 crore but under 1.5 crore. We are worried whether the 1.5 crore limit officially raised yet.
As official notification is not issued by dept. for raising the exemption limit to 1.5 cr, so for registration purpose t/o limit will be 1cr. till any notification issued by dept.
I am registered as a composition scheme dealer. I am a small business importing small quantities of gate motor from Italy. Can I opt for composition scheme? My turnover is just around 20 30 lakhs.
Please advise.
As you are importing goods, you are not eligible for composition scheme.
Dear Sir/Madam,
I am Tax Consultant. One of my client doing Finance Service Business (Daily Interest, Monthly Interest, Vehicle Finance and so on). now he wants to apply GST. If Finance service taxable under GST then What is the SAC Code and how to calculate Taxable Turnover. Please Suggest me.
SAC code for financial services is 99711.
I am a small trader who sells fruits, vegetables, milk etc which are exempt under GST along with other taxable items. I have registered under Composition Scheme, so how do I calculate the GST liability, as my everyday cash sale includes both Taxable and Non Taxable sales. Kindly guide the same.
Turnover for composition scheme will include both taxable and exempt supplies, so you have to pay tax on total turnover.
Hi,
Can you please let me know the turnover limit for composition scheme and also the official notification?
Turnover limit is 1.5 cr under composition scheme.
Dear sir,
We are doing both Restaurant and Hotel Business with the same Pan number. I want to opt composition scheme for the restaurant business. So what is the procedure for the that as they are under the same pan and how to process the same, please help.
Thanking you in advance
You can apply for another registration from the same PAN for other business, but for calculation of threshold limit for composition scheme, the whole turnover from both the businesses will be clubbed.
Opted reign voluntary under composition but turnover is less than 20 lacs what will be the impact of tax liability
You will be treated as the normal registered person under GST composition scheme. You need to fulfil all compliance related to returns filing and tax payment.
I am a manufacturer and in the composite scheme. What will be tax slab 1% or 2% for the Dec 2017?
A rate is 1% for manufacturer registered under composition scheme.
Dear Sir,
I have a retail firm with annual turnover is less than 20 lacs and I have registered under composition scheme of GST. If I only purchase the goods from other states(Manufacturers/Wholesale suppliers) and supply it to the customers only within the state, still do I need to pay 1% of tax amount on my sales every quarter when filing GST? Please guide me.
As you have registered under composition scheme, you have to pay tax on all outward supplies irrespective of amount of turnover.
Ok. Thank you so much for information.
Sir,
I am a medical practitioner doing clinical service which is exempted service and I own a pharmacy where turnover is less than 1.5 crore. At present, I am under general scheme. Can I opt for composite scheme since I am doing exempted services?
“Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number.
Turnover of both exempted, as well as taxable services/goods, has to be taken into account for checking the eligibility for composition scheme.
Hi sir,
I know a company which opted for composition scheme from the beginning of the financial year and they converted to regular from October. but at the beginning of the year, the website didn’t show the GSTR 4 so, the auditor filled the returns on monthly basis itself they field GST-3b till September.Now when they want to do the GSTR-1 for this quarter I mean for the second quarter the website showing composition (GSTR-4)
Now tell me what the auditor should do?whether they file on composition basis or on regular basis?
If opted from Oct, then GSTR-4 has to be filed from October only. For July – Sept, regular returns (GSTR-1,2,3) has to be filed. So from October onwards, GSTR-4 has to be filed.
Can the person who is registered under composition scheme and filling return for the quarter July – Sept convert into the regular dealer?
yes you can apply for withdrawal from composition scheme. Go to amendment section and
Choose the option “Application for Withdrawal from Composition Levy” in Dashboard.
Hi.. If our turnover is more than Rs. 1.5 crore in previous F. Y. i.e. 2016-17 but in current F.Y. 2017-18 our expected turnover will be less than 1.5 crores, in these conditions can we opt for composition scheme after latest amendments in GST.
Both the conditions have to satisfied for claiming the benefit of composition scheme.