As we all know GST is an Indirect tax that is levied on all types of Goods and Services, but there are some specific cases where some are exempted or are specified as non-GST Supply. However, there is some sort of relief for Small Taxpayers, as they cannot be expected to comply with each & every provision under GST such as filings, payments, and other compliances, that is why such Taxpayers can forego such formalities & compliances to pay GST at a fixed rate of the turnover of their business concern.
This is why such taxpayers are provided with the option to avail of the benefits of the Composition Scheme under GST. The scheme is simple and beneficial for small taxpayers in India. The Taxpayer has all the liberty to choose whether they decide to pay tax under the composite scheme or not. However, the scheme can only be opted for by the taxpayer having a turnover of 1.5 crores or less.
The Small Taxpayers will be enabled to have a chance at competing with big Companies, where the key factor such as the price of the good or supply matter. There are a few of the advantages of the Composite Scheme mentioned below: -
Despite Composite Scheme having numerous advantages for small taxpayers, there are still some disadvantages under this scheme. One of the main drawbacks is that the taxpayer is refrained from dealing with the inter-state transaction which leaves the business with limited appropriate territory. Another is that the taxpayer cannot avail of the benefit of Input Tax Credit unlike other GST payers not opting for the Composite Scheme. Furthermore, non-taxable goods such as alcohol and dealing through an e-commerce portal are not allowed under this scheme for such taxpayers.
There are certain conditions regarding the matter of who can be eligible to opt for the Composite Scheme under GST and may avail of the benefits under it.
Among many other provisions regarding the conditions, a few of them are above mentioned.
For more info, Visit us at:
No comments yet, Be the first to comment.