With the number of businesses registered on GSTN increasing day in and out, the need and followed benefits of opting composition scheme is also catching fire amongst small businesses. As many as 5 lakh businesses have opted for the Goods and Services Tax (GST) Composition Scheme as of July 30, informed Revenue Secretary Hasmukh Adhia on social networking and online news platform Twitter.
Small businesses with turnover of upto Rs 75 lakh, but not engaged in any inter-state outward supplies of goods and/or not into making any supply of goods through an electronic commerce operator who is required to collect tax at source, can opt for the composition scheme of the new tax regime – GST.
2/2 The figure of dealers opting for composition in GST is 5.12 lakh upto 30th. The last date for opting is 16th August.
— Dr Hasmukh Adhia (@adhia03) July 31, 2017
Under the scheme, small traders, manufacturers (other than those of ice cream, pan masala and tobacco products) and restaurateurs can pay taxes at 1 per cent, 2 per cent and 5 per cent respectively.
The perks of being a composition scheme-opting small business under GST is that while a regular taxpayer has to pay taxes on a monthly basis, a composition supplier is required to file only one return and pay taxes on a quarterly basis. Also, a composition taxpayer is not required to keep detailed records that a normal taxpayer is supposed to maintain.
The Revenue Secretary also reminded through his tweet that the last date for availing the scheme is August 16, 2017. In a bid to ease compliance burden of small businesses opting to pay tax under the Composition Scheme, the government had extended the time limit for filing intimation form for Composition levy upto August 16 from earlier allotted date of July 21.
