Gst query for composite dealer
This query is : Resolved
07 February 2021
Sir,
A dealer new registered composite scheme(turnover above 40 lacs limit) recently in gst act.
Question:
A dealer how much amount sales turnover and tax (sales turnover minimum and maximum ) compulsory each quarter prescribed in gst act.
A dealer new registered composite scheme(turnover above 40 lacs limit) recently in gst act.
Question:
A dealer how much amount sales turnover and tax (sales turnover minimum and maximum ) compulsory each quarter prescribed in gst act.
07 July 2024
Under the GST composition scheme for businesses with a turnover threshold exceeding 40 lakhs but not exceeding 1.5 crore rupees in the preceding financial year, there are specific rules regarding turnover and tax payments:
1. **Turnover Limit**: The turnover limit for eligibility under the composition scheme is between 40 lakhs and 1.5 crore rupees in the preceding financial year. Once a dealer opts for the composition scheme, they can continue to be part of it until their turnover exceeds 1.5 crore rupees.
2. **Tax Payment under Composition Scheme**:
- **Quarterly Payment**: Dealers under the composition scheme are required to file a quarterly return called GSTR-4 by the 18th of the month following the end of the quarter.
- **Tax Rate**: The composition tax rate is specific to the type of business:
- **Manufacturers and Traders**: 1% of turnover.
- **Restaurants**: 5% of turnover.
- **Service Providers**: Not eligible for the composition scheme.
- **No Input Tax Credit (ITC)**: Dealers under the composition scheme cannot claim input tax credit on purchases.
3. **Quarterly Turnover Limit**: There is no specific minimum or maximum turnover limit prescribed quarterly under the composition scheme. The turnover for computation of tax is based on the aggregate turnover for the quarter.
4. **Payment of Tax**: The tax payable under the composition scheme is based on the turnover for the quarter and is a flat percentage of turnover, as specified above. It needs to be paid by the due date along with the filing of GSTR-4.
5. **Compliance**: Dealers opting for the composition scheme must comply with the quarterly filing requirements and payment of taxes within the prescribed time to avoid penalties and interest.
It's crucial for dealers opting for the composition scheme to understand their obligations and ensure timely compliance with GST regulations to avoid any non-compliance issues.
1. **Turnover Limit**: The turnover limit for eligibility under the composition scheme is between 40 lakhs and 1.5 crore rupees in the preceding financial year. Once a dealer opts for the composition scheme, they can continue to be part of it until their turnover exceeds 1.5 crore rupees.
2. **Tax Payment under Composition Scheme**:
- **Quarterly Payment**: Dealers under the composition scheme are required to file a quarterly return called GSTR-4 by the 18th of the month following the end of the quarter.
- **Tax Rate**: The composition tax rate is specific to the type of business:
- **Manufacturers and Traders**: 1% of turnover.
- **Restaurants**: 5% of turnover.
- **Service Providers**: Not eligible for the composition scheme.
- **No Input Tax Credit (ITC)**: Dealers under the composition scheme cannot claim input tax credit on purchases.
3. **Quarterly Turnover Limit**: There is no specific minimum or maximum turnover limit prescribed quarterly under the composition scheme. The turnover for computation of tax is based on the aggregate turnover for the quarter.
4. **Payment of Tax**: The tax payable under the composition scheme is based on the turnover for the quarter and is a flat percentage of turnover, as specified above. It needs to be paid by the due date along with the filing of GSTR-4.
5. **Compliance**: Dealers opting for the composition scheme must comply with the quarterly filing requirements and payment of taxes within the prescribed time to avoid penalties and interest.
It's crucial for dealers opting for the composition scheme to understand their obligations and ensure timely compliance with GST regulations to avoid any non-compliance issues.
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