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)
How will the aggregate turnover be computed for the purpose of composition
Aggregate turnover will be computed on the basis of turnover on an all India basis and will include value of all taxable supplies, exempt supplies and exports made by all persons with same PAN, but would exclude inward supplies under reverse charge as well as central, State/Union Territory and Integrated taxes and cess.
(FAQ 7: COMPOSITION LEVY)
A person availing composition scheme during a financial year crosses the turnover of Rs.75 lakhs/50 lakhs during the course of the year i.e. say he crosses the turnover of Rs.75 lakhs/50 lakhs in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st March
- No. The option to pay tax under composition scheme lapses from the day on which his aggregate turnover during the financial year exceeds the specified limit (Rs. 75 lakhs / Rs. 50 lakhs). He is rqeuired to file an intimation for withdrawal from the scheme in FORM GST CMP-04 within seven days from the day on which the threshold limit has been crossed.
- However, such person shall be allowed to avail the input tax credit in respect of the stock of inputs and inputs contained in semi-finished or finished goods held in stock by him and on capital goods held by him on the date of withdrawal and furnish a statement within 30 days of withdrawal containing the details of such stock held in FORM GST ITC-01 on the common portal.
(FAQ 6: COMPOSITION LEVY)
When will a person opting for composition levy pay tax
A person opting for composition levy will have to pay tax on quarterly basis before 18th of the month succeeding the quarter during which the supplies were made.
(FAQ 5: COMPOSITION LEVY)