Over 5 lakh traders have opted to composition scheme under the Goods and Services Tax regime, said Union Revenue Secretary Hasmukh Adhia on Monday.
“Dealers opting for composition in the Goods and Services Tax (GST) system is 5.12 lakh up to Sunday (July 30),” he said in a tweet.
Under the composition scheme, traders, manufacturers and restaurants whose annual turnover is below 75 lakhs can pay tax at one per cent, two per cent and five per cent, respectively in the new Goods and Services Tax regime. For North-Eastern States notified by the Government, the limit is Rs. 50 Lakh.
Under the scheme, traders, manufacturers, and owners of restaurants need to pay one, two, and five percent tax respectively.
The traders who wish to avail the benefit of the scheme, have to file intimation in Form GST CMP-01 to the Government before the due date.
Earlier, the GSTN Network today said that can opt for composition scheme under the Goods and Services Tax regime till July 21. This has been now extended to 16th August 2017.
Manufacturers of ice cream, pan masala, tobacco products/susbtitutes and service providers, except restauranteurs, are not eligible to avail of the Composition Scheme.
However, the Composition Scheme availability to a person shall lapse with effect from the date his business turnover reaches the Rs 75 lakh threshold.
The traders under the Composition Scheme would not be entitled to input tax credit.
But if a person registers as a normal taxpayer and his turnover remains below Rs 75 lakh per annum, he cannot switch to the Composition Scheme in the middle of the year and can opt for it only in the next financial year.
A trader will have to mention that he is a “composition taxable person” on notice or signboard displayed at a prominent place at his business premises. Also, on the bill of supply, he required to mention that he is a “composition taxable person, not eligible to collect tax on supplies”.
