TIME TO
OPT FOR COMPOSITION LEVY UNDER GST ACT 2017 EXTENDED UPTO 16.8.2017
The Goods and Services Tax
Act, 2017 came into force with effect from 1.7.2017.
The composition levy is an
alternative method of levy of tax designed for small taxpayers whose turnover
is upto Rs.75 lakhs (Rs.50 lakhs in case of few States). The objective of composition scheme is to
bring simplicity and to reduce the compliance cost for the small traders. Moreover, it is optional and the eligible
person opting to pay tax under this scheme can pay tax at a prescribed
percentage of his turnover every quarter instead of paying tax at normal rate.
COMPOSITION
RATE OF TAX
|
Sl No.
|
Category of registered persons
|
Rate of tax
|
|
1
|
2
|
3
|
|
1
|
Manufacturers, other than
manufacturers
of
such
goods as may be notified by the Government
|
One per cent.
|
|
2
|
Suppliers
making supplies referred to in clause (b) of paragraph 6 of Schedule II
|
Two and a half per cent.
|
|
3.
|
Any
other supplier eligible for composition levy under Section 10 and these rules
|
Half
per cent
|
The last date for opting
composition levy has been extended upto 16th August, 2017.
HOW TO
OPT FOR COMPOSITION LEVY
Login in the GST portal by
entering user name and password and then click Services and then choose “Application
to opt for Composition Levy”.
A new window “Application
to Opt for Composition Levy” will be visible with the GSTIN/Provisional ID,
Legal Name of Business (as per PAN), Trade Name if any, Address of Principal
Place of Business, Financial Year for which Composition levy is opted will be
visible with auto-populated registration details of the Taxpayer.
Just click the Composition
Declaration and Verification and then enter place and click EVC button. Enter the OTP received in the mobile or
E-mail in the OTP Verification link and you will get success message.