Composition Scheme under GST

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Composition Scheme under GST 2017-07-15T16:23:20+00:00

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  • Soni SharmaSoni Sharma
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    #2409 |

    GST has been implemented in India from July 1st, 2017. Government has provided a composition scheme under GST law. If a business who has turnover of less than 75 lakhs in preceding financial year can opt for this scheme. If this scheme is opted by the businessman, then he is not required to charge GST on invoices issued to consumers. They are required to issue bills of supply instead of tax invoice.

    The GST law has provided a flat GST rate for dealers who opted this scheme. Hey have to pay GST at the rate of 2% in case of manufacturers and 1% in case of traders. However, service providers are not allowed to opt this scheme. But there is one exception suppliers of food or drinks other than alcohol can avail this scheme and required to pay GST at the rate of 5%. But it is noteworthy that the dealers who opt this scheme will not be eligible to claim any input tax credit.

    The taxes paid on goods or services received by those dealers will become part of their costs and cannot be used to pay output tax liability.

    I’ve read this article on Taxmann’s Blog. This is very informational. You can read more about Composition scheme here:¬†http://bit.ly/2v38Hym

     

    PANKAJ KumarPANKAJ Kumar
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    Would you please let me know what does n.e.c means?
    In SAC code there are certain codes where description contains n.e.c

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