The document provides an overview of the GST composition scheme aimed at simplifying compliance for small businesses like shopkeepers and manufacturers with benefits such as quarterly returns, reduced paperwork, and competitive pricing. Eligibility is limited to entities with a turnover of 75 lakhs or less, primarily for goods supply, with specific exclusions and tax rates depending on the type of business. Key features include no input tax credit or tax collection, necessitating a specific format for invoices issued under this scheme.

1. ARE YOU A SHOPKEEPER ??? A
SMALL TRADER ??

2. OR A SMALL SCALE MANUFACTURER ??

4. COMPOSITION SCHEME
IN GST
PRESENTATION BY- CMA MAHESH GIRI
AND CMA MANISH KANDPAL
MM & ASSOCIATES
COST ACCOUNTANTS
MOBILE- 9711697891
EMAIL- cmamaheshgiri@gmail.com
manishkandpal2009@yahoo.in

5. COMPOSITION SCHEME -
INTRODUCTION
 TO EASE THE COMPLIANCE BURDEN OF SMALL BUSINESS
 COMPOSITION SCHEME WILL MAKE IT HASSLE FREE
 BENEEFICIAL TO THE DEALER WHO DOESN’T MAKE B2B
SUPPLIES i.e SUPPLIES TO REGISTERED PERSON
 SCHEME IS OPTIONAL TO REGISTERED TAXABLE PERSON
 SHOPKEEPERS, SMALL TRADERS AND SMALL SCALE
MANUFACTURERS ARE BEST SUITED FOR THIS SCHEME

6. ADVANTAGES
 QUARTERLY RETURN ONLY INSTEAD OF MONTHLY
RETURNS UNDER NORMAL SCHEME
 LESS COMPLIANCES
 MORE PROFITS AS COMPARED TO NORMAL SCHEME
( FOR END CONSUMER SALES )
 NO DETAILED RECORDS TO BE KEPT
 NO NEED TO DEPEND ON YOUR SUPPLIERS TO FILE
THEIR RETURNS
 COMPETITIVE PRICES CAN BE OFFERED TO
CUSTOMERS

7. MORE PROFITS UNDER
COMPOSITION SCHEME
S.N NORMAL SCHEME COMPOSITION SCHEME
A Ultimate sales price a
customer will get(
including tax of rs 18000
on 1 lakh)
118000 ULTIMATE SALES PRICE A
CUSTOMER WILL GET (tax will
be paid by dealer on this
118000)
118000
B Purchase price of
goods
80000 Purchase price of goods 80000
C Tax on purchase@18% 14400 Tax on purchase@18% 14400
D Total purchase 94400 Total purchase 94400
E Liability of gst (tax
under A i.e 18000- C i.e
14400
3600 Liability of gst tax on A (e.g 1%
of 118000)
1180
F Margin earned ( A-D-E) 20000 Margin earned ( A-D-E) 22420
EXTRA PROFIT EARNED UNDER COMPOSITION SCHEME (22420-20000) 2420

8. ELIGIBILITY CONDITIONS
 AGGREGATE TURNOVER SHOULD BE 75 LAKHS OR LESS
IN PRECEEDING FINANCIAL YEAR
 SCHEME AVAILABLE TO SUPPLY OF GOODS ONLY
 SERVICES NOT ELIGIBLE FOR THIS SCHEME EXCEPT
RESTAURANT SERVICES (not serving alcoholic liquor)
 NOT ELIGIBLE IF SUPPLIER IS ENGAGED IN INTER-STATE
SUPPLY OF GOODS
 SUPPLIERS ENGAGED IN SUPPLYING GOODS THROUGH
E-COMMERCE OPERATORS NOT ELIGIBLE
 CASUAL TAXABLE PERSON AND NON RESIDENT TAXABLE
PERSON CAN NOT AVAIL THE COMPOSITION SCHEMES

9. RATES OF TAX
 2 % OF THE TURNOVER IN CASE OF MANUFACTURER
 5 % OF THE TURNOVER IN CASE OF RESTAURANT
SERVICES
 1% OF THE TURNOVER IN CASE OF OTHER SUPPLIERS

10. REGISTRATION
 FOR PERSONS REGISTERED UNDER EXISTING LAW
MIGRATING ON THE APPOINTED DAY – INTIMATION
TO PAY TAX IN FORM GST CMP-01
 DETAILS OF STOCK HELD TO BE FURNISHED IN GST
CMP-03 WITHIN 60 DAYS OF EXERCISING THE
OPTION
 FOR FRESH REGISTRATION UNDER GST FOR
COMPOSITION SCHEME- INTIMATION IN FORM GST
REG 01

11. SWITCH OVER FROM NORMAL
SCHEME TO COMPOSITION SCHEME
 REGISTERED PERSON UNDER GST SHALL INTIMATE
IN FORM GST CMP-02
 FURNISH A STATEMENT IN FORM GST ITC-03 FOR
DETAILS OF ITC RELATING TO INPUTS LYING IN
STOCK, SEMI-FINISHED GOODS AND FINISHED
GOODS

12. SWITCH OVER FROM COMPOSITION
TO NORMAL SCHEME
 IF A TAXABLE PERSON HAS CROSSED THE THRESHOLD LIMIT OF
COMPOSITION SCHEME AND BECOMES A REGULAR TAXABLE
PERSON OR CEASES TO BE COMPOSITION DEALER AND NEED TO
PAY TAX UNDER NORMAL SCHEME THEN FORM GST CMP-04
SHALL BE FILED WITHIN 7 DAYS
 TAXABLE PERSON CAN AVAIL INPUT TAX CREDIT IN RESPECT OF
INPUTS HELD IN STOCK, SEMI-FINISHED GOODS, FINISHED GOODS
AND IN CAPITAL GOODS
 ON THE DAY IMMEDIATELY PRECEEDING THE DATE FROM WHICH
HE BECOMES LIABLE TO PAY TAX UNDER NORMAL SCHEME

13. SWITCH OVER FROM COMPOSITION
TO NORMAL SCHEME
 TO AVAIL CREDIT HE WOULD REQUIRED TO FURNISH THE
STATEMENT IN FORM GST ITC-01
 WITHIN 30 DAYS OF BECOMING ELIGIBLE TO TAKE ITC.
 NO CREDIT AVAILABLE ON ANY SUPPLY MADE AFTER
EXPIRY OF ONE YEAR FROM DATE OF INVOICE.
 DETAILS GIVEN IN GST ITC-01 NEEDS TO BE CERTIFIED BY
A PRACTICING COST ACCOUNTANT OR CHARTERED
ACCOUNTANT IF THE CLAIM AMOUNT EXCEEDS TWO
LAKH RUPEES.

14. SOME OTHER FEATURES
 NO INPUT TAX CREDIT
 NO COLLECTION OF TAXES
 “BILL OF SUPPLY” TO BE ISSUED
 “COMPOSITION TAXABLE PERSON NOT ELIGIBLE
TO COLLECT TAX ON SUPPLIES” SHOULD BE
WRITTEN ON TOP OF BILL OF SUPPLY

15. THANK YOU !!