This Scheme is for Small Business who cannot maintain detailed books of accounts and records.

Why GST Composition Scheme is introduced

Normally, an assesse under GST has to maintain proper records of Output and Input and pay 3 Monthly Returns every month+ One Annual Return

This is not possible for small business.

For such business, Government has introduced composition scheme under GST.

As per this Scheme, No Input is available to Composition Dealer. However, he has to pay Output at less Rate

Also Instead of monthly 3 returns, he can file Quarterly One Return plus one Annual Return

Hence, this scheme is for easy compliance of GST Law of small business

4.jpg

Now

If turnover upto 100 lacs, then Composition Scheme can be availed

 

Composition Dealer Limit.jpg

Government has changed GST Rates for Manufacturers from 2% to 1% vide Notification 1/2018

Hence, now GST Rates are similar for Traders and Manufacturers

Summary of Rates

Type of Business

TILL 31 DEC 2017

FROM 1 JAN 2018

Trader

1%

1%

Manufacturer

2%

2%  1%

Restaurant

5%

5%

Other services

N/A

N/A

 

Return and Due Date for Composition Scheme

  • It is normally 18th of next Quarter
  • However Due date of Return for July-September has been extended to 24 Dec 2017
  • Gstr-4 has to be filed for Composition Dealer

 

Period Due Date
July-Sep 2017  24 Dec 2017
Oct-Dec 2017 18-Jan-18
Jan-March 2018 18-Apr-18
April-June 2018 18-Jul-18

 

Option to Avail Composition Scheme

Person can opt for Composition Scheme till 31 March 2018

Suppose scheme opted in one month will be effective from Next Month

Example

Normal Dealer opts for Composition Scheme by 20 Nov 2017

He will file Composition Dealer Return and Tax starting from 1 Dec 2017

 

Normal Dealer Opts For Composition Scheme.jpg

For Composition Dealer 

GST Return for July - Sep Quarter to be filed by 24 Dec 2017

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .