GST Composition Scheme for B.com final year students by Dr. Anita Pandey

1. INTRODUCTION TO
COMPOSITION SCHEME
FOR B.COM FINAL YEAR
PREPARED BY:-
Dr. Anita Pandey
HOD, Commerce Department
SHRI SHANKARACHARYA
MAHAVIDYALAYA

2. INTRODUCTION
GST COMPOSITION SCHEME:-
 It is a simple scheme under GST regime for tax
payers.
 Small tax payers can get rid of tedious GST
formalities and pay GST at a fixed rate of turn over.
 This scheme can be opted by any tax payer whose
turnover is less than Rs.1.5 crore.

3. NEW UPDATES
 As per 32nd GST council meeting held on 10th
January 2019, service providers can also opt for the
composition tax scheme.
 The government has set the threshold limit for
service providers at Rs. 50 lakhs to be eligible for
this scheme.

4. PERSONS ELIGIBLE TO OPT
COMPOSITION SCHEME
 Turnover of all business registered under GST act.
 Total turnover of the business should not be more than
Rs.1.5 crore.
 Revenue from both taxable goods and exempted goods
are included considered in calculation of aggregate
turnover.
 Total turnover from all businesses having same PAN is
considered in calculation of aggregate turnover, even if
the businesses are registered with different GSTIN.

5. PERSONS NOT ELIGIBLE TO OPT
COMPOSITION SCHEME
 Manufacturer of Ice-cream, Pan Masala or
Tobacco.
 A person making inter state supply.
 A casual taxable person or a non resident taxable
person.
 Business which supply goods through an E-
commerce operators.
 Dealers of petrol and diesel are also not eligible.

6. CONDITIONS FOR AVAILING
COMPOSITION SCHEME
 No input tax credit can be claimed by a dealer opting for
composition scheme.
 The tax payer has to pay tax at normal rates for
transactions under the reverse charge mechanism.
 If a taxable person has different segments of business
such as textiles, electronic accessories, groceries etc.
under the same PAN, they must register all such
business under the scheme collectively.
 The tax payer has to mention the word composition
taxable person on every notice or sign board at their
place of business and on every bill of supply issued by
him.

7. ADVANTAGES OF COMPOSITION
SCHEME
 Lesser compliance (returns, maintaining books of
record and issuance of invoices.)
 Limited tax liability
 High liquidity as taxes are at a lower rate.

8. DISADVANTAGES OF COMPOSITION
SCHEME
 A limited territory of business
 No input tax credit available to composition dealers
 The tax payer will not be eligible to supply goods
through an E-commerce portal.

9. “STUDENTS STAY HOME AND BE SAFE…”
REFERENCES
Cleartax.in/s/gst.composition
Professor Shripal Saklecha ( GOODS AND SERVICE TAX)