What are the advantages of registering under the Composition Scheme in GST?

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Sakshi Shah

Bill of Supply
GSTR-4
GSTR-9A

Registration under the Composition Scheme in GST has its own set of advantages and drawbacks. Based on the situation of the business, the advantages and disadvantages must be carefully analyzed to decide whether to opt for composition scheme on GST Portal.

What is Composition Scheme under GST?
Read about Composition Scheme under GST and its features - calculate aggregate turnover, bill of supply, GSTR-4, GST rate, input tax credit
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What is Composition Scheme under GST?
Read about Composition Scheme under GST and its features - calculate aggregate turnover, bill of supply, GSTR-4, GST rate, input tax credit
Read More

Advantages of GST Composition Scheme

GST Return Filing for Composite Dealer (Annual Plan)
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GST Return Filing for Composite Dealer (Annual Plan)
Take help of an expert to file GST Return for Composition Taxpayer
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What are the disadvantages of registering under the Composition Scheme in GST?
Read about Composition Scheme and disadvantages of registering under it - no input tax credit, no inter-state sales, no e-commerce sales etc
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What are the disadvantages of registering under the Composition Scheme in GST?
Read about Composition Scheme and disadvantages of registering under it - no input tax credit, no inter-state sales, no e-commerce sales etc
Read More

FAQs

When to file return under composition scheme in GST?

FY 2019-20 onwards, a Composite Dealer should file GSTR-4 on an annual basis on or before 30th April from the end of the financial year. They should now pay tax on a quarterly basis under Form GST CMP-08. Earlier up to FY 2018-19, GSTR-4 was filed quarterly or before the 18th of the month from the end of a quarter.

What is the eligibility category for opting for composition levy?

The Composition Scheme is a scheme for payment of GST available to small taxpayers whose aggregate turnover in the preceding financial year did not cross the following threshold limit:
a. Sale of Goods and Restaurant Services – Rs. 1.5 Cr for normal category state
b. Sale of Goods and Restaurant Services – Rs. 75 lacs for special category state
c. Sale of Other Services – Rs. 50 lacs

Which are the Special Category States in which the turnover limit for Composition Levy for Central tax and State tax purpose shall be Rs.75 lacs? 

In the case of the following States, the limit of turnover is Rs. 75 lakhs:
1. Arunachal Pradesh
2. Assam
3. Manipur
4. Meghalaya
5. Mizoram
6. Nagaland
7. Sikkim
8. Tripura
9. Himachal Pradesh
10. Uttarakhand
11. Jammu & Kashmir

Is it mandatory for a Composition Dealer to maintain detailed records?

No, it is not mandatory for a registered Composition dealer to maintain detailed records as needed by a normal taxpayer.

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