Composition levy under GST

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1. Person whose aggregate annual turnover in a financial year *does not exceed Rs 50 lakhs* may pay tax under composition at a rate not below 1pc of turnover.

2. No composition scheme will b allowed to dealer who makes inter state supplies.

3. Person cannot opt for both composition and regular. Say a person having PAN has three business regd then he wil hb to opt for composition in respect of all businesses.

4. Rt now there is no bar on service providers to opt for Composition.

5. Composition dealer not to collect any tax and shall *not* be entitled to take ITC.

6. If it is detected that person was not eligible for composition then penalty equal to tax payable may b levied.

7. Composition dealer will have to file *four quartely* and *one annual return* 

NEW Composition SCHEME under NEW MODEL GST LAW

 1. This Scheme is Applicable to registered taxable person, whose aggregate turnover in the *Preceding financial year* did not exceed 50 Lakh Rupees

2. Rate of Tax will be *Not Less than* 2.5% for Manufacturers & 1% in other Case

3. This Scheme is Not Applicable for: (a) Supplier of services (b) Supply of Goods outside the state (c) Supply of goods through an electronic commerce operator who is required to collect tax at source (d) Manufacturer of such goods as may be notified

4. This Scheme shall stand withdrawn from the day on which his aggregate turnover during a financial year exceeds 50 Lakh rupees.

REGARDS

SOURAV BAGARIA