Changes recommended in Composition Scheme

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Changes recommended in Composition Scheme
Resource Chapter 58            
Resource GST Discussion            

Changes recommended in Composition Scheme

i.  Uniform rate of tax @ 1% under composition scheme for manufacturers and traders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurant.  

ii.   Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed by exempting the same.

iii.  Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rupees 1 crore under the law. Thereafter, eligibility for composition will be increased to Rs. 1.5 Crore per annum.

iv. The changes recommended by GST Council at (iii) above will be implemented only after the necessary amendment of the CGST Act and SGST Acts.

Remember

A. You can't collect tax from the buyer of the goods.

B. You have to pay tax even on the sale of exempted supply.

C. You have to display outside the shop that you opted for composition scheme.

D. You are not entitled for any Input Credit.

E. Interstate Supply till date not allowed. 

F. Restaurants selling alcohol not eligible for Composition Scheme. So you opt for normal scheme with 5% Tax no ITC.

G. Amendment in CGST and SGST Act shall be done by the respective legislative assembly or parliament.