About GST Composition Scheme
Are you a composition dealer? Are you kind of worried on your precise tax returns as well as GST? If you have come across the term GST, then in all probability you must have encountered the economic phrase Composition scheme under GST. In case you have missed on this crucial component somehow, you need to go through the following details in depth.
It is, in fact, a new coinage in the parlance of trade and commerce. Being an important member of the world of commerce, you need to grab the details of the tax return related to Composition scheme under GST. It is precisely important like other quintessential aspects related with GST such as reverse charge mechanism, input tax based credit systems, composite tax etc.
A business person, who is labelled as a composition dealer or a composition vendor, needs to understand composition scheme under GST because it directly relates with the tax rates which are going to be applicable on his products or services. This particular scheme is actually conceptualized to get the SMEs out of their discomfiture and assist them well so that they can perform creditably in a competitive environment.
Why GST Composition Scheme
To give the essence of Composition scheme under GST it is a quite simplified as well as uncomplicated scheme. It definitely comes under the banner of GST. It is highly anticipated as well as presumed that small taxpayers are going to get a lot of relief after they initiate taking advantage out of this beneficial scheme. Taxpayers (especially belonging to fraternity of SMEs) will get a window of opportunity which they can use to their advantage.
As per this particular scheme, business fraternities will have the chance to pay their taxes within a limit. The taxes will be determined after taking a close look at the turnover which the small business entities make yearly.
Who can opt for GST Composition Scheme?
Composition scheme under GST is going to be availed by any business entity that has a turnover which is below 1 crore in Indian currency. If your earning potentials are bigger or greater than this earning bracket then you will not be considered to be eligible for the scheme. In order to grab the best insights out of this beneficial scheme you need to be in touch with a staunch and experienced GST professional that has the perfect knowledge regarding GST and all ancillary aspects. In this regard, there are some other aspects to ponder over.
Crucial aspects of business which will be evaluated under GST Composition Scheme
If you own an SME you need to furnish specific details to be nominated under this scheme. Facts which you will need to furnish are as follows-
- Complete and unadulterated details related to your business
- Your digital signature
- Your name and complete address details
- Exact value pertaining to the products or services you put on sale
- HSN code
How you are going to pay taxes under GST Composition Scheme?
As a matter of fact, you will find paying your taxes under this scheme as easy as slicing butter. There is evidently no scope of hassles while trying to make your payments. As you intend to make the tax payment, you will have to focus on three specific modes through which you are going to enact the tax payment part. The three modes of payment are-
What are the specific returns that you can expect to file under GST Composition Scheme?
Let us concentrate on one of the most crucial aspects related to this option. In this connection, GSTR-9A does play a vital role for sure. You will need to furnish all the vital details pertaining to your annual return. You need to keep one thing in mind. It is more than essential that you are going to file your return before the upcoming financial year. Once the filing part is taken care of you are all sorted.
What benefits you are supposed to get from this scheme
While focusing on this crucial scheme for all Indian SMEs, let us concentrate on the shining side of it. To be precise, it is high time to ponder over the benefits you can procure from this scheme.
What are the demerits of Composition Scheme under GST?
It is not that this scheme is all about benefits. If you delve deep into the inner circles of GST, you will surely figure it out that there are certain disadvantages as well as demerits associated with this scheme.
- Composition dealers are not entitled to get access to tax credits even in the least
- They are not going to get entitled to tax inputs
- Taxpayers who come under the parlance of composition scheme under GST, will not be provided with the option to trade through any sort of ecommerce portal for sure.
- Business entities who are into inter state business transactions will not be considered eligible for this beneficial scheme
- Territories which are considered eligible for this scheme are actually quite limited.
- Lower burden on the shoulders of a huge number of SMEs - While unravelling the various aspects of the scheme (be it merits or demerits), it is at least understandable that a great number of business communities will heave a sigh of relief as they would be entitled with bounteous tax exemptions for sure. In this competitive market, it is in fact a boon which many will appreciate. However, big business houses do not have gain a lot from this latest edition in the GST world as of now. In order to reign supreme in your respective field of business, you have to furnish yourself with all the essential details that pertain to the scheme. The sooner you can get your knowledge base the better for you. To find this scheme entirely useful to your ultimate objective of profit you should understand the compliance related aspects as much as possible.
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Monthly GSTR 8 (Summary of Tax Collected at Source (TCS) and deposited by e-commerce operators) for Apr 2021May 10th ,2021
Monthly GSTR 7 (Summary of Tax Deducted at Source (TDS) and deposited) for Apr 2021May 10th ,2021
GSTR 1 for Apr 2021 (turnover more than INR. 1.50 Crore)May 11th ,2021
GSTR 6 (Details of ITC received and distributed by ISD) Monthly Filing Due Date for Apr 2021May 13th ,2021
Last date of depositing the sixth instalment of advance tax (if liable to pay any) for FY 2020-21 for individual and corporate taxpayersMay 15th ,2021
GSTR 3B for Apr 2021 (Annual Turnover of more than Rs 5 Cr in Previous FY)May 20th ,2021