The Goods and Services Tax Act,
2017 came into force in
There are three types of return filing options available under the GST Act to suppliers of Goods or Services or both
a) Monthly (for persons who want to avail input tax credit for the inward supplies effected from registered taxpayers)
b) Quarterly (for Composition opted persons and for tax payers whose aggregate annual turnover is below rupees 1.5 crores who want to avail input tax credit for the inward supplies effected from registered taxpayers
c) Annual (for TDS under section 37 and a casual taxable person and a non-resident taxable person).
Normal taxpayers, who don’t want to avail ITC facility, may
opt for composition scheme having aggregate
turnover (at PAN level) upto Rs. 1.5 Crore in the previous financial year and
having aggregate turnover (at PAN level) upto Rs. 75 lakh in the previous financial
year and who are registered in Arunachal Pradesh, Manipur, Meghalaya, Mizoram,
Nagaland, Sikkim, Tripura & Uttarakhand and supplying services and/or mixed
supplies having aggregate turnover of previous financial year upto Rs. 50
lakhs.
The manufacturers of Ice Creams and other edible ice, whether or not containing cocoa, tobacco and manufactured tobacco substitutes, Pan Masala and Aerated Water are not eligible to opt for composition scheme.
ADVANTAGES AND DIS-ADVANTAGES
|
COMPOSITION
SCHEME |
REGULAR SCHEME |
|
Will have to make quarterly payments of GST at the appropriate rates including RCM. |
Will have to make monthly payments or to opt for Quarterly Return filing and Monthly Payment. |
|
Input Tax Credit not allowed and hence GST for outward supplies of goods or services or both may be paid at the appropriate rates including RCM without making any excess payment. |
Input Tax Credit allowed. If the supplier of Goods or Services or both fails to file GST Returns within the stipulated time, the recipient is not eligible to take input tax credit for that period and hence the recipient will have to pay huge tax while filing FORM GSTR-3B.for that period which is a huge burden to the recipient. No possibility of availing of ITC by the recipient if the supplier fails to file GST returns. |
|
Annual GST Return in FORM GSTR-4 must be filed after making all quarterly payments. |
(12) Monthly / (4) Quarterly returns in FORM GSTR-1 has to be filed. Annual Return in FORM GSTR-9 (optional) has to be filed. |
|
Inter-state supplies will not be allowed. |
Inter-state supplies will be allowed. |
|
Will have to make 4 GST quarterly payments and to file only one annual return in FORM GSTR-4 after making all payments. |
Will have to file FORM GSTR-1 monthly or quarterly. (12 times or 4 times) Will have to file FORM GSTR-3B monthly or quarterly. (12 times or 4 times) |
The GST Portal is now open to opt for composition scheme for the financial year 2021-22 and also for opting regular scheme (who is not eligible for composition scheme for reasons like increase in turnover and inclusion of non-GST goods).
The relevant message is given below for ready reference:
Opting-in
for Composition Scheme for Financial year 2021-22
24/03/2021
1.
How
to opt-in for Composition Scheme:
o
The eligible registered
taxpayers, who want to opt-in for composition scheme for the FY 2021-22, need
to file FORM GST CMP-02 application, on or before 31st March,
2021, post login on GST portal. The taxpayers may navigate as follows:
Log-in>Services
> Registration > Application to opt for Composition Levy>Filing form
GST CMP-02>File application under DSC/EVC
o
Once Form GST CMP-02
application is filed, the composition scheme will be available to the taxpayer,
w.e.f. 1st April 2021.
o
The taxpayers already opted
in for composition scheme earlier are not required to opt
in again for FY 2021-2022.
o
Taxpayers who were regular
taxpayers in previous FY, but are opting-in for composition scheme for 2021-22,
must file Form GST ITC-03 for reversal of ITC on stocks of inputs,
semi-finished goods and finished goods available with them, within 60 days from
the effective date of opting in.
2.
Who
is eligible for opting-in for Composition Scheme:- Following Normal taxpayers, who don’t want to avail ITC facility,
may opt for this scheme:
o
having aggregate turnover
(at PAN level) upto Rs. 1.5 Crore in the previous FY.
o
having aggregate turnover
(at PAN level) upto Rs. 75 lakh in the previous FY and who are registered in
Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura &
Uttarakhand.
o
supplying services and/or
mixed supplies having aggregate turnover of previous FY upto Rs. 50 lakhs.
3.
Who
is not eligible for opting in composition scheme:
o
Suppliers of the
goods/services who are not liable to pay tax under GST
o
Inter-State outward
suppliers of goods/services
o
Taxpayers supplying goods
through e-commerce operators who are required to collect tax under sec 52
o
The manufacturers of
notified goods like Ice cream and other edible ice, whether or not containing
cocoa, tobacco and manufactured tobacco substitutes, Pan Masala & Aerated
water
4.
For more details click on:
o
User Manual: https://tutorial.gst.gov.in/userguide/compositionpoc/compositionscheme.htm
o
FAQ: https://tutorial.gst.gov.in/userguide/compositionpoc/optforcomposition.htm