If any person want to change regular to composition .he is saller and he sale 5%,12%,18,28%all rate if goods,
Is composition is good for him
1). Dear Friend, First of all now we can't change from regular to composition , we have to wait for next year.
2). If we took composition scheme we can't take input tax credit on purchase and at the same you can't give output tax invoice, you have give only total invoice bill to the customer. If mostly customer are end users then in that case composition scheme is better. In composition scheme bills maintenance not required.
For example:
1) In case of regular tax
purchase 1000
gst @ 18% 180
total bill 1180
same goods sold for profit 100
total taxable value 1280
gst @ 18% 230
total bill value 1510
ultimately you are paying gst 230-180=50.
For customer total bill 1510 in regular tax.
2) In composition scheme
purchase 1000
gst @ 18% 180
total bill 1180
sold same goods with 100 margin
taxable value 1280
gst @ 1% 12.80
total bill value 1292.80
in this case you are paying 12.80 gst
For customer total bill value is 1292.80.
CAclubindia
