GST Ki Master Class III Composition and record keeping – Power Point Presentation by Finance Ministry
PART A-Composition Scheme
Part B- Accounts and records
– Low rate of tax
– Hassel free simple procedures for such taxpayers
– Simple calculation of tax based on turnover
– A very simple quarterly return
The composition scheme is for
– Manufacturers (other than few notified goods)
– Traders of goods
– Restaurants
having aggregate turnover of Rs 75 lakh in the previous financial year subject to certain conditions and restrictions
The aggregate turnover limit is Rs 50 lakh for following 9 states:
Assam | Meghalaya | Manipur | Arunachal Pradesh | Mizoram |
Tripura | Nagaland | Sikkim | Himachal Pradesh |
Two special category states, Uttrakhand and J & K have opted for keeping the turnover limit as Rs 75 lakh
o Aggregate turnover for determination of eligibility:
o Composition Scheme if availed shall include all registered persons having same PAN
o Composition scheme availability to a person shall lapse with effect from the date of his reaching the threshold turnover of seventy five lakh rupees.
Tax rates
Category of taxpayer | Rate |
Manufacturer | 2 % |
Traders | 1% |
Restaurants | 5% |
1% State tax |
1% Central Tax
|
Taxpayer ‘A’ is a manufacturer having one unit in U P and another in M P. Total turnover of two units in last FY was Rs 55 lakh. Total turnover of two units in the first quarter of this year was Rs 20 Lakh
Unit | Location | Turnover in previous FY | Turnover in 2nd quarter of this FY | Total tax (@2%) |
A1 | U.P. | Rs 25 lakh | Rs 5 lakh | Rs 10,000 |
A2 | M. P. | Rs 30 lakh | Rs 10 lakh | Rs 20,000 |
Aggregate turnover | Rs 55 lakh | Rs 15 lakh |
– makes (i) a supply of non-GST goods; or (ii) an inter-state supply; or (iii) a supply that attract TCS
– is engaged in manufacture of goods, namely, ice cream, pan masala or tobacco and manufactured tobacco substitutes
– Is a casual or a non-resident taxable person
Category of persons | How to exercise option | Effective date of composition levy |
Persons migrated from central excise and VAT | Intimation in form CMP-01 & declare stock in CMP03 | From beginning in GST |
New registration under GST | Intimation in the registration form | From the effective date of registration |
In other cases | Intimation in Form CMP-02 | Beginning of the financial year |
o Production or manufacture of goods Supplies (inward/outward supply, supplier and recipient details, invoice, credit/debit note, delivery challan)
o Stock ( receipt, used, lost, balance and location where goods are stored including in transit etc)
o Input tax credit and use of inputs/input service
o Output tax payable
o Advance payments received and adjusted
o notify maintenance of additional documents
o prescribes alternative documents, if such class is not able to maintain records as per the provisions of the Act.
Maintaining electronic records:
Are to be authenticated by digital signature
Maintained and preserved in the manner that these can be restored within reasonable period in an
circumstances
On demand to provide details, password, and explanation of codes used.
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