Last Date to Opt Composition Scheme for FY 2024-25 is 31 March 2024
The GST Composition Scheme offers a simplified tax structure for eligible taxpayers with a turnover within specified thresholds. Existing GST taxpayers can apply to avail this scheme for FY 2024-25 by 31 March 2024, provided they meet the requirements. Once opted in, taxpayers do not need to file another intimation if they continue to meet the eligibility criteria or do not withdraw from the scheme.
Eligibility Criteria:
Restaurants and businesses with an annual turnover up to Rs 1.5 crore (Rs 75 lakhs for special category States) can opt for the GST Composition Scheme.
For service providers, except restaurants, the turnover threshold is set at Rs 50 lakh.
When to Apply:
- At the time of GST Registration: The scheme can be availed during fresh GST registration.
- Before Financial Year Commencement: Existing GST registered taxpayers can apply before the start of the intended financial year.
How to be Applied by Existing Taxpayers:
- Log in to the GST portal.
- Go to the Services section and click on ‘Registration’.
- Select ‘Application to opt for Composition Levy’.
- Fill Form CMP-02 and click ‘Submit’.
Switching Back:
Taxpayers can switch back to the regular GST scheme anytime during the financial year by filing Form CMP-04 for withdrawal. Upon opting out, taxes must be paid as a regular GST taxpayer, issuing tax invoices for all taxable supplies. Input Tax Credit (ITC) can be claimed for inputs held in stock, semi-finished or finished goods, and capital goods upon returning to the normal taxpayer status.
Ineligible Categories:
The following individuals/entities are not eligible for the GST Composition Scheme:
- Casual taxable persons
- Non-resident taxable persons
- Those engaged in inter-state supply of goods/services
- Those providing non-taxable goods/services
- Suppliers using an e-commerce operator required to collect tax at source (TCS) per GST provisions.
- Special Industries including manufacturers of goods such as ice cream, pan masala, aerated water, tobacco, fly ash bricks, building bricks, earthen or roofing tiles, etc.
Ensure to make the most of this simplified tax structure by opting in before the deadline of March 31, 2024, to streamline your GST compliance for the upcoming financial year 2024-25.
To Know more Details About the COmposition Scheme CLICK HERE
To Access the FAQ on Composition Scheme in the GST portal CLICK HERE
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