Notification related to Composition scheme of GST is promulgated
All rumors have since been put to rest and the GST shall be in force with effect from 1st July 2017 with certain relaxation relating to filing of monthly return for first two months
NEW INDIRECT TAX REGIME GST TO BE IN FORCE FROM 1ST JULY, 2017.
All rumors have since been put to rest and the GST shall be in force with effect from 1st July 2017 with certain relaxation relating to filing of monthly return for first two months.
This is going to be biggest tax reform in independent India. In the process of implementation of GST, the Central Board of Excise and Customs have issued certain Notifications on 19th June, 2017. One of the important Notifications is Noti. No. 03/2017-Central Tax dated 19th June, 2017, which has prescribed the procedures and other formalities for observance by the registered person opting for COMPOSITION Scheme of GST. Basically, this scheme is designed for the traders whose turnover was note more than 75 lakhs in the preceding financial year. This scheme envisaged lesser compliances as the return is to be filed on quarterly basis. The highlights and basic procedure of the scheme can be summarized as under:
|Form Required to be filled||Due date of submission||Purpose|
|GST CMP-01||Within 30 days of appointed day||To opt for Composition Scheme by provision registration holder|
|GST CMP-02||Prior to commence of a financial year||Intimation to opt for scheme.|
|GST CMP -03||Within 60 days of exercising of option||Details of stock and inward supplied from unregistered person.|
|GST CMP -04||Within 7 days happening of event||Intimation towards withdrawal of scheme|
|GST REG-01||Prior to appointed day (i.e. before 1st July, 2017)||Registration|
|GST GSTR-4||18th of the month after the quarter. Say for Jul-Sep, 2017 quarter the due date shall be 18th Oct, 2017||Quarterly Return.|
|GST ITC 01||30 days of opting out of the scheme||Details of inputs in stock (also semi-finished and finished)|
|GST ITC -13||Within 60 days of commencement of financial year||Intimation towards available Input Tax Credit.|
Other major conditions for a person operating under COMPOSITION scheme are:
The rate of GST under the scheme are as under:
|Category of registered person||Rate of Tax|
|Manufacturer (except manufacturer of notified goods like pan masala)||2 % ( 1 % SGST + 1 % CGST)|
|Supply of food or other articles for human consumption except alcoholic liquor||5 % ( 2.5 % SGST + 2.5 % CGST)|
|Others (like common retailer)||1 % ( 0.5 % SGST + 0.5 % CGST)|
The scheme has some disadvantage such as the person working under Composition scheme is not entitled to avail any input tax credit and at the same time pay tax at the prescribed rates. Thus, tax paid on inputs and tax paid on supplies both are expenditure to him. For more details Notification No. 03/2017-Central Tax dated 19th June, 2017 can be referred.