Indore: The traders who wish to opt for composition scheme under Goods and Service Tax (GST) regime from April 1 will be required to apply for it before March 31. It is necessary for traders that their total turnover in last financial year is below Rs 1 crore. The scheme holders have to pay 1% GST.
This was stated by senior GST consultant and chartered accountant Sunil Jain while addressing a workshop jointly organised by Commercial Tax Practitioners’ Association and MP Tax Law Bar Association here on Wednesday. In his speech, Jain explained the nitty-gritty of scheme to a large gathering of the tax consultants and traders. He said that before opting for the scheme, a trader must comply with the conditions of the scheme. For instance, his total turnover in last financial year must not exceed Rs 1 crore.
After opting for the scheme, a trader will have to pay 1% GST on gross supply. However, this provision will not be applicable on traders engaged as service providers. For a dealer, 1% GST will be payable only on the taxable supply. A manufacturer will have to pay 1% GST on total supply.
However, this provision under the scheme will not be applicable to ice cream, pan masala, tobacco and its allied product manufacturers. The scheme will not be applicable from the day when the turnover will cross Rs 1 crore in current financial year. The trader will also not be eligible to take input tax credit.
Speaking further, Jain said that all those who want to avail the scheme from April 1 must intimate before March 31 through CMP-2 form. Within 90 days from April 1, he will have to file stock statement through ITC-3 form. Any trader can exit from the scheme.
Those present on the occasion included MP Tax Law Bar Association president Ashwin Lakhotia, Commercial Tax Practitioners’ Association president Ashok Gaur, senior tax consultants Amit Dave, Rajesh Jain, Kedar Heda, Yaswant Lobhane, Subhash Bafana, Hemant Shah, Kamal Sodani, Amar Maheshwari, Anurag Lakhotia and Guru Dayal Soni.