FINAL PPT ON COMPOSITION SCHEME UNDER GST ( june 2017) FOR PROFESSIONALS, SMALL SCALE MANUFACTURERS, SHOPKEEPERS, SMALL TRADERS ETC.

1. ARE YOU A SHOPKEEPER ??? A
SMALL TRADER ??

2. OR A SMALL SCALE MANUFACTURER ??

4. COMPOSITION SCHEME
IN GST
PRESENTATION BY- CMA MAHESH GIRI
AND CMA MANISH KANDPAL
MM & ASSOCIATES
COST ACCOUNTANTS
MOBILE- 9711697891
EMAIL- cmamaheshgiri@gmail.com
manishkandpal2009@yahoo.in

5. COMPOSITION SCHEME -
INTRODUCTION
 TO EASE THE COMPLIANCE BURDEN OF SMALL BUSINESS
 COMPOSITION SCHEME WILL MAKE IT HASSLE FREE
 BENEEFICIAL TO THE DEALER WHO DOESN’T MAKE B2B
SUPPLIES i.e SUPPLIES TO REGISTERED PERSON
 SCHEME IS OPTIONAL TO REGISTERED TAXABLE PERSON
 SHOPKEEPERS, SMALL TRADERS AND SMALL SCALE
MANUFACTURERS ARE BEST SUITED FOR THIS SCHEME

6. ADVANTAGES
 QUARTERLY RETURN ONLY INSTEAD OF MONTHLY
RETURNS UNDER NORMAL SCHEME
 LESS COMPLIANCES
 MORE PROFITS AS COMPARED TO NORMAL SCHEME
( FOR END CONSUMER SALES )
 NO DETAILED RECORDS TO BE KEPT
 NO NEED TO DEPEND ON YOUR SUPPLIERS TO FILE
THEIR RETURNS
 COMPETITIVE PRICES CAN BE OFFERED TO
CUSTOMERS

7. MORE PROFITS UNDER
COMPOSITION SCHEME
S.N NORMAL SCHEME COMPOSITION SCHEME
A Ultimate sales price a
customer will get(
including tax of rs 18000
on 1 lakh)
118000 ULTIMATE SALES PRICE A
CUSTOMER WILL GET (tax will
be paid by dealer on this
118000)
118000
B Purchase price of
goods
80000 Purchase price of goods 80000
C Tax on purchase@18% 14400 Tax on purchase@18% 14400
D Total purchase 94400 Total purchase 94400
E Liability of gst (tax
under A i.e 18000- C i.e
14400
3600 Liability of gst tax on A (e.g 1%
of 118000)
1180
F Margin earned ( A-D-E) 20000 Margin earned ( A-D-E) 22420
EXTRA PROFIT EARNED UNDER COMPOSITION SCHEME (22420-20000) 2420

8. ELIGIBILITY CONDITIONS
 AGGREGATE TURNOVER SHOULD BE 75 LAKHS OR LESS
IN PRECEEDING FINANCIAL YEAR
 SCHEME AVAILABLE TO SUPPLY OF GOODS ONLY
 SERVICES NOT ELIGIBLE FOR THIS SCHEME EXCEPT
RESTAURANT SERVICES (not serving alcoholic liquor)
 NOT ELIGIBLE IF SUPPLIER IS ENGAGED IN INTER-STATE
SUPPLY OF GOODS
 SUPPLIERS ENGAGED IN SUPPLYING GOODS THROUGH
E-COMMERCE OPERATORS NOT ELIGIBLE
 CASUAL TAXABLE PERSON AND NON RESIDENT TAXABLE
PERSON CAN NOT AVAIL THE COMPOSITION SCHEMES

9. RATES OF TAX
 2 % OF THE TURNOVER IN CASE OF MANUFACTURER
 5 % OF THE TURNOVER IN CASE OF RESTAURANT
SERVICES
 1% OF THE TURNOVER IN CASE OF OTHER SUPPLIERS

10. REGISTRATION
 FOR PERSONS REGISTERED UNDER EXISTING LAW
MIGRATING ON THE APPOINTED DAY – INTIMATION
TO PAY TAX IN FORM GST CMP-01
 DETAILS OF STOCK HELD TO BE FURNISHED IN GST
CMP-03 WITHIN 60 DAYS OF EXERCISING THE
OPTION
 FOR FRESH REGISTRATION UNDER GST FOR
COMPOSITION SCHEME- INTIMATION IN FORM GST
REG 01

11. SWITCH OVER FROM NORMAL
SCHEME TO COMPOSITION SCHEME
 REGISTERED PERSON UNDER GST SHALL INTIMATE
IN FORM GST CMP-02
 FURNISH A STATEMENT IN FORM GST ITC-03 FOR
DETAILS OF ITC RELATING TO INPUTS LYING IN
STOCK, SEMI-FINISHED GOODS AND FINISHED
GOODS

12. SWITCH OVER FROM COMPOSITION
TO NORMAL SCHEME
 IF A TAXABLE PERSON HAS CROSSED THE THRESHOLD LIMIT OF
COMPOSITION SCHEME AND BECOMES A REGULAR TAXABLE
PERSON OR CEASES TO BE COMPOSITION DEALER AND NEED TO
PAY TAX UNDER NORMAL SCHEME THEN FORM GST CMP-04
SHALL BE FILED WITHIN 7 DAYS
 TAXABLE PERSON CAN AVAIL INPUT TAX CREDIT IN RESPECT OF
INPUTS HELD IN STOCK, SEMI-FINISHED GOODS, FINISHED GOODS
AND IN CAPITAL GOODS
 ON THE DAY IMMEDIATELY PRECEEDING THE DATE FROM WHICH
HE BECOMES LIABLE TO PAY TAX UNDER NORMAL SCHEME

13. SWITCH OVER FROM COMPOSITION
TO NORMAL SCHEME
 TO AVAIL CREDIT HE WOULD REQUIRED TO FURNISH THE
STATEMENT IN FORM GST ITC-01
 WITHIN 30 DAYS OF BECOMING ELIGIBLE TO TAKE ITC.
 NO CREDIT AVAILABLE ON ANY SUPPLY MADE AFTER
EXPIRY OF ONE YEAR FROM DATE OF INVOICE.
 DETAILS GIVEN IN GST ITC-01 NEEDS TO BE CERTIFIED BY
A PRACTICING COST ACCOUNTANT OR CHARTERED
ACCOUNTANT IF THE CLAIM AMOUNT EXCEEDS TWO
LAKH RUPEES.

14. SOME OTHER FEATURES
 NO INPUT TAX CREDIT
 NO COLLECTION OF TAXES
 “BILL OF SUPPLY” TO BE ISSUED
 “COMPOSITION TAXABLE PERSON NOT ELIGIBLE
TO COLLECT TAX ON SUPPLIES” SHOULD BE
WRITTEN ON TOP OF BILL OF SUPPLY

15. THANK YOU !!