- For non special category states and the state of J&K limit enhanced to 1 crore.
- For special category states excluding J&K limit enhanced from 50 lacsto 75 lacs
Older limits were notified in NN8/2017 dated 27-07-2017
In GSTR-4 for Compositon dealers no information required to be provided for Inward supplies from registered persons , than supplies attracting RCM [NN 45/2017 dated 13-10-2017 Para 2(viii)]
The above exemption is available only for quarter ending 30-09-2017 and quarter ending 31-10-2017
Interim period GSTR-4 for opting composition scheme in the mid of quarter [Proviso to Rule 62(1) inserted by NN 45/2017 dated 13-10-2017 Para 2(iv)
- Where effective date of compositon scheme is not the Ist month of quarter
- GSTR-4 is required to filed for remaining period of the quarter for which composition scheme is effective
And GSTR-1,2,3,3B shall be filed for prior months during which composition scheme was not applicable.
Mid year Any time Availment of Composition Scheme opened till 31-03-2018 vide Notification 45/2017 dtd 13-10-2017 vide Para 2(i)
The above availment of Composition Scheme is available from Ist day of the each month immediately succeeding the month in which intimation of opting for Composition Scheme is filed in GST CMP-02. This amendment has been brought by substituting Rule 3(3A).
Further the above, option is available to :
- Persons who have been granted provisional registration for migration from existing law u/R 24 OR
- Persons who have been granted final certificate of registration GST REG-06 under Rule 10(1)
In old Rule 3(3A) inserted by Notification 34/2017 dated 15-09-2017, the option was available to :
- a) Persons who have been granted provisional registration for migration from existing law u/R 24 OR
- b) Persons who have applied for registration u/R 8(1) by declaring his Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of Form GST REG-01
Further in old Rule 3(3A) the mid year option was available only till 30-09-2017.
Hence now composition scheme can be availed by
Migrated Persons granted provisional registration u/R 24 could apply in
- GST CMP-01 till 21-07-2017 which was later extended to 16-08-2017 [Rule 3(1)]. Stock details in GST CMP-03 is required to filed in such cases as per R.3(4) in 60 days (extended to 90 days) from date of exercise of option. Even if CMP-01 is filed after appointed day i.e. 22-06-2017, still only bill of supply to be issued.
- Making fresh application of Registration in Part A of GST REG-01by declaring his Permanent Account Number, mobile number, e-mail address, State or Union territory [R.3(2)].
- Making of option before commencement of financial year[ R.3(3)]. Stock Detail in GST ITC-03 is required to be filed in such cases with in 60 days from the commencement of financial year i.e. till 31May.
- In the middle of the year till 31-03-2018 only effective from Ist day of month following the month of option [R.3(3A)] . Stock detail in GST CMP-03 to be filed in 90 days from day on which persons starts payment of tax in composition scheme.
After furnishing GST ITC-03, TRAN-01 is not permitted to be furnished.
Hence GST CMP-02 is applicable both for Rule 3(3) and Rule 3(3A) for which suitable amendment has been made in Form GST CMP-03 by Para 2(v) of NN 45/2017 dated 13-10-2017
Time limit for filing of GSTR-4 by Composition dealers for quarter ending 30-09-2017 extended to 15-11-2017 by Notification 41/2017 dated 13-10-2017
However no exemption has been provided for payment of tax. Hence tax is required to be paid till 18-10-2017 as per section 39(2)
Extension for filing stock information by migrated Composition Persons from 60 to 90 days
Notification 22/2017 dated 17-08-2017
What are the penal consequences if a taxable person violates the conditions prescribed for composition scheme
Following are the consequence for non-compliance with the conditions specified for composition scheme:
1. shall be liable to pay additional taxes at the rates applicable to regular taxable person;
2. shall be liable to penalty; and
3. the amount of tax and penalty shall be recovered in terms of Section 73 or 74of the CGST Act, 2017.
(ICAI FAQ PUBLICATION 06-09-2017 COMPOSITION LEVY: FAQ NO.61)
A taxable person can still pay tax under composition scheme even after the turnover in the current financial year exceeds seventy-five lakh rupees
In terms of Section 10(3), the option availed for paying tax under composition scheme shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified i.e. seventy-five lakh rupees. However, the threshold limit for special category states have been kept at ` 50 lakh rupees except Uttarakhand.
(FAQ ICAI PUBLICATION 06-09-2017 COMPOSITION LEVY: FAQ NO. 60)
What is aggregate turnover
In terms of Section 2(6) of the CGST Act, 2017, “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax,Union territory tax, integrated tax and cess;
(FAQ ICAI PUBLICATION 06-09-2017 COMPOSITION LEVY: FAQ NO.59)
Can a customer who buys from a taxable person who is under composition scheme claim composition tax as input credit
No, the recipient is not eligible to take input tax credit of composition tax paid. Moreover, a taxable person paying taxes under composition scheme is not entitled to collect taxes from the recipient in terms of Section 10(4) of the CGST Act, 2017. Accordingly, there does not arise a question for the recipient to claim input tax credit.
(ICAI FAQ PUBLICATIONS 06-09-2017 COMPOSITION LEVY: FAQ NO. 58)