TYPE OF GST REGISTRATION
- REGULAR SCHEME
- COMPOSITION SCHEME
A.WHAT IS COMPOSITION SCHEME?
A taxpayer whose turnover is below Rs 1.5 crore* can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.
Table of Contents
B.WHO CANNOT OPT FOR COMPOSITION SCHEME?
The following people cannot opt for the scheme-
- Manufacturer of ice cream, pan masala, or tobacco
- A person making inter-state supplies
- A casual taxable person or a non-resident taxable person
C.DIFFERENCE BET WEEN COMPOSITION REGISTRATION AND REGULAR REGISTRATION
| NATURE | REGULAR SCHEME | COMPOSITION SCHEME |
| Can Make Interstate Sales ? | Yes | No |
| Can Collect Output GST from buyer ? | Yes | No |
| Can claim Input Tax Credit (ITC )? | Yes | No |
| Tax Rate | GST Schedules Rate applicable [Nature of goods and Services] | For Manufactures and Traders(goods) – CGST@.5% and SGST@.5% (1%).For Restaurants not serving alcohol – CGST@2.5% and SGST@2.5% (5%).Other Service Providers-CGST@3% and SGST@3% (6%). |
| Invoice Type | Tax Invoice | Bill of Supply |
| Tax Payment Period | Monthly | Quarterly (3 months) |
| Tax Return Filing Period | Monthly and Yearly | Quarterly (3 months) and Yearly |
| Tax Return Form | Monthly- GSTR-1, GSTR-2A, GSTR-2B & GSTR-3B.Annual- GSTR-9 | Monthly- CMP-08.Annual- GSTR4 |
