FAQ's on GST Return Filing- Composition Supplier for 1 Quarter
In the GST regime, any regular business has to file two monthly returns and one annual return(if the Turnover exceeds Rs. 2 Crores). This amounts to 24 returns in a year. The beauty of the system is that one has to manually enter details of one monthly return – GSTR-1 and The other return – 3B will get auto-populated by deriving information from GSTR-1 filed by you and your vendors.
A return is a document containing details of income which a taxpayer is required to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability. Under GST, a registered dealer has to file GST returns that includes:
Purchases
Sales
Output GST (On sales)
Input tax credit (GST paid on purchases)
A registered taxpayer, whose aggregate turnover does not exceed Rs one Crore Fifty Lacs only can opt for Composition Scheme.
However, For Taxpayers in North Eastern States and Himachal Pradesh , the limit will be Rs. 75 Lacs.
The following person cannot opt for the composition scheme:
Manufacturer of ice-cream;
Manufacture of tobacco;
Manufacture of pan masala;
A person who is making an inter-state supplies;
A casual taxable person;
A non-resident taxable person;
Business which are engaged in supplying of goods through e-commerce operator.
There are three types of rates prescribed:
MANUFACTURER AND TRADERS OF GOODS- 1% divided in 0.5% of CGST and SGST each.
RESTAURANTS WHICH ARE NOT SERVING ALCOHOL- 5% divided in 2.5% of CGST and SGST each
OTHERS- 6% divided in 3% in CSGT and SGST each.
There are following advantages of availing composition scheme:
There will be lesser compliance under this scheme,
There’s also limited tax liability,
There will be lower rate so taxes will have high liquidity.
There are following disadvantages of availing composition scheme:
The taxable person is restricted for inter-state supplies,
The dealer will not be able claim Input Tax Credit,
The dealer will also not able to sell the non-taxable goods.