PPT ON COMPOSITE LEVY - GST

1. TRICHY COMMISSIONERATE
COMPOSITE LEVY - GST
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2. 2
Definition
 Composite supply of goods and services Sec 2(30)
 taxable person to a recipient
 consisting of two or more goods or services or both
 naturally bundled or supply I
 n conjunction with each other in ordinary course of supply
 one of which is principal supply
• Composite supply shall be treated as supply of services Sec 7(d)&Schedule II(6)
 works contract - a contract for building, construction, fabrication,
completion, erection, renovation, alteration or commissioning of any
immovable property etc. wherein transfer of property in is involved.
 supply, by way of or as part of any service or in any other manner
whatsoever, of goods, being food or any other article for human
consumption or any drink

3. Eligibility & Conditions
Aggregate turnover of the person having same PAN of does not exceed Rs. 50
lakhs during the previous financial year. Sec 10(1)
“Aggregate turnover” = (value of all taxable + non-taxable + exempted + exports) –
(taxes under GST + inward supplies+ value of supply chargeable under reverse charge )
Sec 2(6)
 Cannot be engaged in supply of services, other than supply of food or drinks for human
consumption Sec 10(2)a
 Cannot be engaged in manufacture of specific notified goods Sec 10(2)e and Rule 3(e)
 Cannot supply goods not taxable under GST Sec 10(2)b
 Cannot supply goods through an e-commerce operator Sec 10(2)d
 Cannot be neither a casual taxable person or non-resident taxable person Rule 3(a)
 Cannot engage in inter-state outward supply of goods and services Sec 10(2)c
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4. 4
….Eligibility & Conditions
 Payment of composition tax – If the composite tax payer is in the trade of supplying
goods and services, then composition levy will be applicable for both supply of goods
and supply of services.
 Does not have to collect tax – Does not have to collect tax on all his outward
supply of goods and/or services. Sec 10(4)
 Cannot claim Input Tax Credit – Not eligible to claim input tax credit on all his
inward supply of goods and / or services Sec 10(4)
 Applicable for all business verticals under the same PAN – All business verticals
operating within state or interstate under the same PAN. Proviso, Sec 10(2)
 Goods received from unregistered and exempted supply category - Pay tax under
reverse charge on inward supply of goods or services or both received Rule 3(d)
 Words to be mention in certain cases– “composition taxable person, not eligible to
collect tax on supplies” for bill of supply, “composition taxable person” for notice or
signboard at the place of business. Rule 3(f)(g)

5. 5
Intimation Rule 1
Within 60 days
of exercise
option
Details of stock
Inward supply of
goods received
from
unregistered
persons
FORM
GST CMP- 03
For those files
intimation FORM
GST CMP-01
FORM GST ITC-
3 Statement details
- ITC relating to
inputs lying in
stock, inputs
contained in semi-
finished or finished
goods - within 60
days of financial
year
Intimation in FORM
GST CMP- 02 for
exercise option
Fresh
registration
intimation must
be filed
Composition
scheme holder
must fulfil
following yearly
compliance
FORM GST
REG- 01
If intimation
is filed after
the
appointed
days
Will not
collect taxes
Issue bill of
supply for
supplies
Registration
granted on a
provisional
basis > opts
for Scheme >
file an
intimation,
duly signed,
before or
within 30 days
of appointed
date
FORM
GST CMP-01

6. • Appointed date where FORM GST CMP-01 is
filed
• Beginning of the financial year where FORM
GST CMP- 02 is filed
To pay tax under
Composition
Scheme normally
• within 30 days from the day he becomes
liable for registration, such date, where
application has been submitted
• above condition is satisfied, the effective
date of registration shall be the date of grant
of registration (Read with rue 3 of
registration)
Intimation filed
in FORM GST REG-
01 , considered
only after grant of
registration
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Process & Effective date (Rule 2)

7. Conditions satisfied
Conditions not satisfied
Self withdraw
Proper officer reason to believe
Remain as composite tax payer
Pay tax normally and issue invoice for taxable supply
File FORM GST CMP 04 within 7 days as intimation
File before the date of withdrawal FORM GST CMP 04
duly singed, electronically in common portal
Tax payer not eligible or contravene the Act or Rule
Issue show cause notice in the form of FORM GST CMP 05
File reply by the taxpayer within 15 days in FORM GST CMP 06
Reply within 30days in FORM GST CMP 07 accepting or rejecting
Validity
Validity Rule 4

8. • shall lapse with effect from the day on which his
aggregate turnover during a financial year exceeds
the limit specified Sec 10 (3)
Exceeding the
aggregate turn over
• Proper officer may cancel the registration from such
date, including any retrospective, if a person has not
furnished returns for three consecutive tax periods
Sec 29 (2)b
Has not furnished
return for three
consecutive periods
• Proper officer has reasons to believe that a taxable
person has paid tax under the scheme despite not
being eligible, in addition to any tax that may be
payable by him shall pay the penalty Sec 10 (5)
Penalty payable for
not eligibility
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Cancellation & Penalties

9. 9
Rates Rule 5
1%1
• Manufacturers, other than manufacturers of such goods as may be notified
by the Government
2.5%2
• Suppliers making supplies like food and other drinks for human
consumption
0.5%3
• Any other supplier eligible for composition levy

10. Form GSTR-4A
Quarterly Sec 39(2)
Auto-populated details of
inward supplies made
available to the recipient
registered under
composition scheme on
the basis of FORM
GSTR-1 furnished by the
supplier
Form GSTR-4
Quarterly Sec 39(2)
All outward supplies of
goods and services
including auto-populated
details from Form GSTR-
4A and tax payable details.
Details of any additions,
modifications, or deletions
in Form GSTR-
4A should also be
submitted in Form
GSTR-4.
Form GSTR-9A
Annual
Consolidated details
of quarterly returns
filed along with tax
payment details.
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Returns Rule 4 & 21 Return rules

11. Company
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