SMEpost

Composition Scheme returns: Govt reopens ‘less tax, no input credit’ window for small businesses

The Goods and Services Tax Network (GSTN) has announced the return of the composition scheme window for small businesses, this time till September 30. The small tax payers, with turnover upto Rs 75 lakh as per the scheme criterion, who migrated from the earlier excise/ service tax/VAT regime after the composition scheme’s previous deadline of August 16 will be able to register under the scheme for tax relaxation.

“Many taxpayers who migrated after August 16 could not avail this facility as it was open till August 16, 2017 only. To make this facility available to all those who could not opt for Composition, the facility has been opened again by the GST Council. This is also open to those who registered afresh under GST but did not avail the facility at the time of registration,” said GSTN in a release.

The composition scheme has been designed to simplify and reduce the burden of compliance for smaller taxpayers. Businesses opting for the composition scheme will see a lesser compliance burden as they will have to file returns only once in a quarter. The popularity of the scheme was increasing, when the scheme ended. Taxpayers were earlier given time till August 16 to opt for the composition scheme. Only 10.86 lakh taxpayers of the 85 lakh registered businesses opted for the scheme.

The tax payers who opt for the composition scheme during this period will get this facility from October 1 for the current financial year.

As per the Network’s guidelines, any small business that has been granted registration on a provisional basis or regular basis and has turnover not exceeding Rs 75 lakh, and who wishes to opt for the composition levy under section 10 of the Act, is required to electronically file an intimation, duly signed or verified through electronic verification code, at the GST portal on or before September 30, 2017.