GST Composition Scheme
Here are the key aspects of GST compliance for businesses opting for the Composition Scheme:
Eligibility:
To avail of the
GST Registration:
If a business qualifies for the Composition Scheme, it needs to register under the scheme by filing the necessary application with the tax authority. Upon approval, a unique Composition Scheme registration number is issued.
The Composition Scheme mandates businesses to submit quarterly returns rather than the standard monthly returns, resulting in simplified returns The scheme typically involves filing a simplified return, such as the GSTR-4, which provides summary details of outward supplies, inward supplies, and tax payable.
Tax Payment:
Businesses under the Composition Scheme pay tax at a prescribe percentage of their turnover.
Which is typically lower than the regular GST rates. They are not required to maintain detailed records of inward and outward supplies, as the tax liability is determined based on turnover.
Invoice and Record-keeping:
While businesses under the are not required to issue tax invoices, they must provide a bill of supply for their supplies. They are also require to maintain records of their inward supplies, including purchase invoices, and a summary of their outward supplies.
Restrictions and Limitations:
Businesses opting for the Composition Scheme are subject to certain restrictions, such as not being able to collect tax from customers or claim input tax credit on their purchases. They are also prohibit from engaging in certain activities, such as making supplies through e-commerce operators.
Timely Compliance:
It is essential for businesses under the Composition Scheme to meet the compliance deadlines and ensure timely payment of the applicable tax liabilities. Late filing or non-compliance may attract penalties or additional obligations.
It is advisable for businesses opting for the to consult with a tax professional or refer to the guidelines provide by the tax authority in their respective country for detailed information on GST compliance requirements specific to the Composition Scheme. These requirements may vary depending on the jurisdiction and its GST laws.
To visit https://www.gst.gov.in/
Contact: 8130555124, 8130045124
Whatsapp: https://wa.me/918130555124
Mail ID: operations@vibrantfinserv.com
Web Link: https://vibrantfinserv.com
FB Link: https://fb.me/vibrantfinserv
Insta Link: https://www.instagram.com/vibrantfinserv2/
Twitter: https://twitter.com/VibrantFinserv
Linkedin: https://www.linkedin.com/in/vibrant-finserv-62566a259/
