Composition Scheme

Frequently Asked Questions about Composition Scheme under GST (Goods & Service Tax), its advantages and disadvantages, provisions to opt and tax rates

Can a service provider opt for Composition Scheme under GST?
Yes. Business providing services can opt for Composition Scheme under GST. Earlier, Services except Restaurant Services were not allowed to opt for Composit...
Wed, 30 Mar, 2022 at 12:22 PM
Can a Seller of Goods opt for Composition Scheme?
Seller of goods can opt for Composition Scheme u/s 10 of the GST Act if: Aggregate Turnover of the business during financial year does not exceed Rs.1.5...
Wed, 30 Mar, 2022 at 12:22 PM
Who can opt for Composition Scheme under GST?
When aggregate turnover of business during financial year does not exceed Rs.1.5 Crore for goods (Rs.75 lacs for special category states) and Rs.50 lacs f...
Wed, 30 Mar, 2022 at 12:22 PM
What is tax rate under Composition Scheme?
Business registered under Composition Scheme cannot collect GST on sales made to its customers. It cannot claim the input tax credit of GST paid on purchase...
Wed, 30 Mar, 2022 at 12:22 PM
What are disadvantages of registration under Composition Scheme?
No Input Tax Credit - Composite Dealer cannot claim ITC. Thus, tax paid on purchase cannot be utilized for payment of tax on sale Cannot collect GST o...
Wed, 30 Mar, 2022 at 12:22 PM
What are the advantages of registration under Composition Scheme?
Less Record-Keeping - Detailed records and accounts are not required to be maintained Less Returns - While other taxpayers need to file monthly return...
Wed, 30 Mar, 2022 at 12:22 PM
What is Composition Scheme under GST?
Composition Scheme is voluntary scheme with simpler returns and lesser compliance under GST. A business that needs to mandatorily register under GST because...
Wed, 30 Mar, 2022 at 12:22 PM
How to opt for Composition Scheme under GST?
Log in to the GST Portal Go to  Services > Registration > Application to Opt for Composition Scheme The screen business details like GSTIN, leg...
Wed, 30 Mar, 2022 at 12:22 PM
How to check the status of Composition Scheme of a business on GST Portal?
To check whether has opted in for Composition Scheme or opted out of Composition Scheme, follow these steps: Login to GST Portal  Click on Services &g...
Wed, 30 Mar, 2022 at 12:22 PM
Should I register under Composition Scheme or Regular Scheme under GST?
To analyse whether a business should register under the composition scheme or not, the following factors should be considered:  ...
Wed, 30 Mar, 2022 at 12:22 PM