Frequently Asked Questions on Composition Levy Q 1. What is composition levy under GST? Ans. The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 75 lakhs ( Rs. 50 lakhs in case of few States). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. Moreover, it is optional and the eligible person opting to pay tax under this scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at normal rate. Q 2. What is the specified rate of composition levy? S. No. Category of Registered person Rate of Tax 1 Manufacturers, other than manufacturers of such goods as may be notified by the Government (Ice cream, Pan Masala, Tobbacco prodcuts etc.) 2% ( 1% Central tax plus 1% State tax) of the turnover 2 Restaurant Services 5% ( 2.5% Central tax plus 2.5% SGST) of the turnover 3 Traders or any other supplier eligible for composition levy 1% ( 0.5% Central tax plus 0.5% State tax) of the turnover Q 3. What is the eligibility category for opting for composition levy? Which are the Special Category States in which the turnover limit for Composition Levy for Central tax and State tax purpose shall be Rs. 50 lakhs? Ans. Composition scheme is a scheme for payment of GST available to small taxpayers whose aggregate turnover in the preceding financial year did not cross Rs. 75 lakhs. In the Read more…
Tag: GST
New Delhi, July 7: Ministry of Finance launched an app – GST Rate Finder – on Friday to allow consumers verify the accurate tax rate on commodity and services under the Goods and Services Tax (GST) regime. The application has been Read more…
Services by a CA in GST The benefits to professionals in learning and providing service in GST as soon as possible could be as under: Retain existing clients by providing the initial services to transit and comply with GST. Get many new clients shifting from those consultants who are not updated with GST. Increased/wider basket of services- expand the firm capability. Increased fees due to increased work & time requirement especially in regular compliance and consultancy. Get familiar with the different IT being used in business including accounting which may need changes which would take some time. Add value to the SME clients prior to and at the time of transition in the following ways: Ensure business of client continues without disruption. Business Change necessary if any Ensure the margins in business are protected due to advance information. GST Ready Clients will get business advantage – more orders, smooth and fair cost cuts from customers, reduced prices from vendors, – win win possibilities. Ensure Top 5 advantages in GST for Trader Ensure Top 5 advantages to SSI Units in GST Ensure top 5 advantages to job workers in GST Ensure Top 5 advantages to service provider clients under GST Ensure Top 5 advantages to works contractor clients in GST Ensure Top 5 advantages to a transport clients in GST Ensure Top 5 advantages to a hotel clients in GST Read more…
Goods and Services Tax is set to bring along a new regime of business compliance in India. Large organizations have the requisite resources and expertise to address these requirements. On the flip side, many startups and Small and Medium Enterprises Read more…
Invoice under general parlance vs. tax parlance: Invoice in simple terms is nothing but a document specifying list of goods sent or services provided and a statement of the sum due against those items. Invoice is often understood as ‘proof Read more…