New Delhi: Every business registered under GST needs to submit returns either every month or every quarter, along with an annual return. These returns, known as GSTR filings, are completed online through the GST portal. But, if you want to avail the benefit of the Composition Scheme, the deadline is March 31, 2024.
Now, you may be wondering what the GST Composition Scheme is. If yes, continue reading to find out crucial details related to it. (Also Read: Upcoming IPOs Next Week: Check Price Band, Lot Size, Minimum Investment Amount, And More)
What Is GST Composition Scheme?
The Composition Scheme under the Goods and Services Tax (GST) offers a straightforward and hassle-free tax solution for small businesses. It allows eligible taxpayers to streamline their GST formalities and pay taxes at a fixed rate based on their turnover. (Also Read: Latest SBI FD Rates 2024: Check Current Fixed Deposit Interest Rates, Return Calculator)
Eligibility Criteria
Any taxpayer with an annual turnover of less than Rs 1.5 crore can opt for the Composition Scheme. However, for states in North-Eastern India and Himachal Pradesh, the turnover threshold is Rs 75 lakh.
Additionally, as per the CGST (Amendment) Act, 2018, composition dealers are now allowed to provide services up to ten percent of their turnover or Rs. 5 lakhs, whichever is higher.
Beneficial For Small Businesses
For small businesses grappling with complex tax procedures, the Composition Scheme provides a sigh of relief. Under this scheme, taxpayers can avoid the cumbersome GST procedures and instead pay tax at a fixed rate determined by their turnover.
How To Opt For GST Composition Scheme?
To avail of the Composition Scheme, taxpayers need to file GST CMP-02 with the government. This can be conveniently done online through the GST Portal.
It’s essential for dealers interested in the Composition Scheme to submit this intimation at the start of every financial year.