MAHESH GIRI - PPT ON COMPOSITION SCHEME UNDER GST ( june 2017)
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The document provides an overview of the GST composition scheme aimed at simplifying compliance for small businesses like shopkeepers and manufacturers with benefits such as quarterly returns, reduced paperwork, and competitive pricing. Eligibility is limited to entities with a turnover of 75 lakhs or less, primarily for goods supply, with specific exclusions and tax rates depending on the type of business. Key features include no input tax credit or tax collection, necessitating a specific format for invoices issued under this scheme.
MAHESH GIRI - PPT ON COMPOSITION SCHEME UNDER GST ( june 2017)
- 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 !!