Yes. Such persons can give the option to pay tax under the composition scheme in Part B of FORM GST REG-01. This will be considered as an intimation to pay tax under the composition scheme.
(FAQ 17: COMPOSITION LEVY)
What are the other compliances which a provisionally registered person opting to pay tax under the composition levy need to make
Such person is required to furnish the details of stock, including the inward supply of goods received from unregistered persons, held by him on the day preceding the date from which he opts to pay tax under the composition scheme, electronically, in FORM GST CMP-03, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within a period of sixty days from the date on which the option for composition levy is exercised or within such further period as may be extended by the Commissioner in this behalf.
(FAQ 16: COMPOSITION LEVY)
A person registered under existing law (Central Excise/Service Tax/VAT) and who has been granted registration on a provisional basis wants to opt for composition scheme. How and when can he do that
Such a person has to electronically file a duly signed/verified intimation in FORM GST CMP-01, on the common portal, prior to 22nd June, 2017 or such further period as may be allowed by the Commissioner.
(FAQ 15: COMPOSITION LEVY)
What is the form in which an intimation for payment of tax under composition scheme needs to be made by the taxable person
The intimation is to be filed electronically in FORM GST CMP- 01 or FORM GST CMP- 02.
(FAQ 14: COMPOSITION LEVY)
A person opting to pay tax under the composition scheme receives inputs/input services from an unregistered person. Will the composition taxpayer have to pay GST under reverse charge? If yes, in what manner
Yes. Tax will have to be paid on such supplies by the composition taxpayer under reverse charge mechanism. The tax can be paid by the 18th day of the month succeeding the quarter in which such supplies were received. The information relating to such supplies should be shown by the composition taxpayer in Table 4 of return in FORM GSTR -4.
(FAQ 13: COMPOSITION LEVY)
What are the basic information that need to be furnished in GSTR-4
It would contain details of the turnover in the State or Union territory, inward supplies of goods or services or both and tax payable.
(FAQ 12: COMPOSITION LEVY)
Are monthly returns required to be filed by the person opting to pay tax under the composition scheme
No. Such persons need to electronically file quarterly returns in Form GSTR-4 on the GSTN common portal by the 18th of the month succeeding the quarter. For example return in respect of supplies made during July, 2017 to September, 2017 is required to be filed by 18th October, 2017.
(FAQ 11: COMPOSITION LEVY)
Can a person paying tax under the composition scheme issue a tax invoice under GST
No. He can issue a bill of supply in lieu of tax invoice.
(FAQ 10: COMPOSITION LEVY)
Can a registered person, who purchases goods from a taxable person paying tax under the composition scheme, avail credit of tax paid on purchases made from the composition dealer
No as the composition dealer cannot collect tax paid by him on outward supplies from his customers, the registered person making purchases from a taxable person paying tax under the composition scheme cannot avail credit.
(FAQ 9: COMPOSITION LEVY)
Can a person who has opted to pay tax under the composition scheme avail Input Tax Credit on his inward supplies
No. A taxable person opting to pay tax under the composition scheme is out of the credit chain. He cannot take credit on his input supplies. When he switch over from composition scheme to normal scheme, eligible credit on the date of transition would be allowed.
(FAQ 8: COMPOSITION LEVY)