composition scheme gst

Composition Scheme under GST 

The objective behind the composition scheme is to bring simplicity and reduce the compliance cost for small taxpayers.

Composition Scheme under GST  is a simple and easy scheme  for Small taxpayers.

Features of Composition Scheme.

Turnover :- A taxpayer whose turnover is below Rs 1.5 Crores.can opt in for Composition Scheme. (can be extended to Rs.2 crore)

In case of North-Eastern states and Himachal Pradesh, the limit is Rs 75 lakh.

Tax Rate :- Uniform tax rate of 1% applicable for both traders and manufacturers.

Services :- Composition suppliers allowed services upto Rs. 5 lakh per annum for eligibility.

Exempted supply :- Exempted supply not to be taxed at 1%.

Restaurant :- Restaurant sector taxpayers may also opt for the scheme. Tax rate is 5%

Capture

Service providers :- Service providers are not eligible

dealer registered under composition scheme is not required to maintain detailed records

Composition Dealer is not allowed to avail input tax credit of GST paid to their supplier.

Bill of Supply :- A composition dealer cannot issue tax invoice, instead they can issue a bill of supply. This is because a composition dealer cannot charge tax from their customers.

GST payment :- GST Payment has to be made out of pocket. The consumer/ the receiver of supplies will not be liable to pay GST to the supplier .

The taxable person is required to furnish only one return i.e. GSTR-4 on a quarterly basis and an annual return in FORM GSTR-9A.

Composition Dealer is not allowed to collect composition tax from the buyer.

The taxpayer has to mention the words ‘composition taxable person’ on every notice or signboard displayed prominently at their place of business

The taxpayer has to mention the words ‘composition taxable person’ on every bill of supply issued by him.

Composition Scheme is available only for intra-state supplies.The taxpayer can only make intra-state supply (sell in the same state) i.e. no inter-state supply of goods.

taxpayer has to file Form GST CMP-01 or GST CMP-02 with the government. This intimation should be given at the beginning of every Financial Year by a dealer wanting to opt for Composition Scheme.

The taxpayer must mention the words ‘composition taxable person, not eligible to collect tax on supplies’  at the top of the bill of supply issued by him.

The taxpayer has to mention the words ‘composition taxable person’ on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business.

Exempting goods from e-way bill under gst

  • The following items are exempting from e-way bill provisions of GST.
  • So vehicle transporting the following goods are not nessary carrying e-way bill.
  • Therefore without e-way bill, the following goods can be transport from one place to another.
  1. Contraceptives,
  2. judicial and non-judicial stamp paper,
  3. newspapers,
  4. khadi,
  5. raw silk,
  6. Indian flag,
  7. human hair,
  8. kajal,
  9. earthen pots,
  10. cheques,
  11. municipal waste,
  12. puja samagri,
  13. LPG,
  14. kirosene,
  15. heating aids,
  16. currency,
  17. vegetables,
  18. fruits,
  19. food grains,
  20. meat,
  21. bread,
  22. curd,
  23. books and
  24. jewelry.

What is e-way bill under GST.

GST e-way bill for transport of goods under the goods and services tax regime.

GST e-way bill is an electronic bill which will be required for the movement of goods in case the value of the goods are above fifty thousand rupees.

GSTN Portal

The bill can be generated from the GSTN portal and
every registered taxpayer must require this e-way bill along with the goods transferred.

 

GST E-way bill

 

GST e-way bill

e-way bill for transport of goods under the goods and services tax regime.

GST e-way bill is an electronic bill which will be required for the movement of goods in case the value of the goods are above fifty thousand rupees (Rs.50,000)

GSTN Portal

The bill can be generated from the GSTN portal and
every registered taxpayer must require this e-way bill along with the goods transferred

unique EBN

To generate an e-way bill, the supplier and transporter will have to upload details on the GSTN portal, after which a unique EBN will be made available to the supplier, the recipient and the transporter on the common portal.

E-way bill can be generated by registered supplier or recipient or the transporter.
E-way will have details of the goods being transported

SMS
According to the report, the e-way bill can be generated as well as cancelled via SMS.
Goods are transferred from vehicle to vehicle
An e-way bill is required even if goods are transferred from one vehicle to the other.

consolidated e-way bill.

And, for multiple consignments, transporters need to generate a consolidated e-way bill.

E-way bill not needed

Under the following cases,e-way bill not necessarty

  • Goods transported by nonmotorised

goods transported by a nonmotorised conveyance

  • Goods for clearance by customs

where the goods are being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by customs .

Notification to be issue for e-way bill

The date from which the e-way bill, which  would come into effect is yet to be notified.

 

Goods exempted from GST e-way bill

list of products exempted under gst

List of items exempted under GST.The Goods and Services Tax (GST) in India was implemented on July 1, 2017. Here is the list of products that are kept outside the purview of GST:-

1. Animal feed
2. Aquatic feed
3. Betel leaves
4. Bread
5. Butter milk
6. Children’s’ picture, drawing or coloring books
7. Coconuts
8. Contraceptives (Condoms)
9. Curd
10. Earthen pot and clay lamps
11. Educational services
12. Eggs
13. Fire wood
14. Fish
15. Fresh fruits
16. Fresh milk
17. Fresh vegetables
18. Gandhi topi
19. Hand operated agriculture equipments
20. Hearing aids
21. Human blood
22. Human hair
23. Indian national flag
24. Indigenous handmade musical instruments
25. Jaggery
26. Judicial, Nonjudicial stamp papers, Court fee stamps
27. Khadi yarn
28. Kumkum, Bindi, Sindur
29. Lassi
30. Live animals
31. Live trees and plants
32. Medical services
33. Municipal waste, sewage sludge, clinical waste
34. Non-alcoholic Toddy, Neera
35. Oraganic manure
36. Pappad
37. Plastic bangles
38. Poultry feed & cattle feed
39. Prasad (sacred food)
40. Printed books, including Braille books and newspaper, periodicals & journals
41. Puffed rice (muri)
42. Puja samagri
43. Raw jute
44. Raw silk
45. Raw wool
46. Salt
47. Semen
48. Slates, Slate pencils and chalk sticks
49. Tender coconut water
50. Unbranded atta (flour) and maida
51. Unbranded besan (gram flour)
52. Unbranded natural honey
53. Unpacked foodgrains (Cereals, pulses)
54. Unpacked paneer
55. Water (other than aerated, mineral, purified)
56. Wood charcoal

consumption based tax

GST is a consumption based tax

GST is a consumption based tax i.e. the tax should be received by the state in which the goods or services are consumed and not by the state in which such goods are manufactured. IGST is designed to ensure seamless flow of input tax credit from one state to another. One state has to deal only with the Centre government to settle the tax amounts and not with every other state, thus making the process easier.

For e.g.: – A dealer in Maharashtra sold goods to the consumer in Maharashtra worth Rs. 10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%, in such case the dealer collects Rs. 1800 and Rs. 900 will go to the central government and Rs. 900 will go to the Maharashtra government.

what is gst tax

goods and services tax

State GST (SGST)

The GST to be levied by the State on intra-State supply of goods and/or services  is State GST (SGST).

Central GST (CGST)

The GST to be levied by the Centre on intra-State supply of goods and/or services is Central GST (CGST)

Integrated GST (IGST)On inter-state supply of goods and services, Integrated GST (IGST) will be collected by Centre.

GST on imports

On imports supply of goods and services, Integrated GST (IGST) will be collected by Centre.

gst tax

gst tax

goods and services tax

State GST (SGST)

The GST to be levied by the State on intra-State supply of goods and/or services  is State GST (SGST).

Central GST (CGST)

The GST to be levied by the Centre on intra-State supply of goods and/or services is Central GST (CGST)

Integrated GST (IGST)

On inter-state supply of goods and services, Integrated GST (IGST) will be collected by Centre.

imports

On imports supply of goods and services, Integrated GST (IGST) will be collected by Centre.

GST is a consumption based tax

GST is a consumption based tax i.e. the tax should be received by the state in which the goods or services are consumed and not by the state in which such goods are manufactured. IGST is designed to ensure seamless flow of input tax credit from one state to another. One state has to deal only with the Centre government to settle the tax amounts and not with every other state, thus making the process easier.

For e.g.: – A dealer in Maharashtra sold goods to the consumer in Maharashtra worth Rs. 10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%, in such case the dealer collects Rs. 1800 and Rs. 900 will go to the central government and Rs. 900 will go to the Maharashtra government.