What is composition scheme?

What is composition scheme?

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8 Answer(s)

Goods and Services Tax is set to bring along a new regime of business compliance in India. Large organizations have the requisite resources and expertise to address these requirements. On the flip side, many startups and Small and Medium Enterprises (SMEs) may struggle to comply with these provisions. To resolve such scenarios, the government has introduced Composition Scheme under GST, which is merely an extension of the current scheme under VAT law.

Answered on May 30, 2017.
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Basically you pay lesser rate GST as compared to non composition scheme assessees. but this lesser rate seller can\’t charge seperately to buyer. he will have to include that in his bill.

Answered on May 30, 2017.
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If assessee has turnover less than 50L, composition scheme can be opted. Under this scheme, a prescribed rate of tax is charged on turnover. No ITC is available. Applicable only for intra state supply.

Answered on May 30, 2017.
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If ur turmover is below 75 lakhs then u can opt composite schmr and pay 1% tax

Answered on June 12, 2017.
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It is paying taxes at less rates say 1% 2% etc after satisfying 3 conditions in the act.

Answered on June 23, 2017.
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Its an optional scheme under which an assessee shall have to pay lower rate of tax as compared to rates specified under normal scheme..However an assessee shall not be allowed to avail any input credit.

Answered on June 23, 2017.
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It is a scheme given by the government for the persons whoes turn over is less than 75 lac rate is differs as below 1. retailer 1% 2. manufacturer 2% 3. restaurant 5 %

Answered on June 23, 2017.
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This scheme has many conditions. Pls have a look. No ITC. Pay Reverse charge on URD purchase including expenses involving any goods or services. No Composition for service provider except Food in Restaurant. No inter-state sale. etc. Probable high costing due to no ITC. Benefit in Compliances.

Answered on June 23, 2017.
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Gen GST