The GST Regime has been continuously bringing many changes in order to ease the Taxpayer in one or the other way. And One of the Beneficial mode introduced by the Government is the Composition Scheme which is the Simple and Easy Scheme for the Taxpayers under GST. Under the Composition Scheme, Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. Also, a taxpayer opting for composition scheme has to pay tax at a nominal rate.
To bring simplicity and to reduce the compliance cost for the small taxpayers, the Government first decided to keep the Threshhold to be Rs. 75 lakhs that means the Taxpayers having the Annual Turnover below Rs. 75 lakh could opt for the Composition Scheme and could avail the benefits of Less GST Compliances. Further The Threshold was increased to Rs. 1 Crore to increase the scope of Benefit for the Taxpayers. And Gradually the Threshold Limit has increased to Rs. 1.5 Crore due to which the Businesses with Annual Turnover upto Rs. 1.5 Crore can now opt for the Compostion Scheme and avail the Benefits of Lesser GST Compliances.
And this Scheme is Applicable for the Following Taxpayers:
- Manufacturers of Goods
- Traders of Goods
- Restaurants not Serving Alchocol
However Service Providers except Restaurants are not Eligible for the Composition Scheme.
As per the Notification dated 01.01.2018, the Composition Rates have been Revised as below:
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