BRICKS in 2022 - 2023 - Composition or Reguular

480 views 2 replies

Libissa

Accountant

337 Points Joined April 2018

i am doing flyash bricks & building bricks in compostion scheme now new implement form 1.4.2022 for bricks is in composition is 6% now i want to know whether i can file as composition or withdraw from composition and transfer to regular and file returns monthly and pay 6% tax without taking ITC or continue in composition and pay tax 6% in same scheme

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9596 Points Joined December 2011

Under the composition scheme, no input tax credits are allowed for any purchase of goods by the taxpayer registered under the scheme. He can set-off output tax liability from the tax paid on the purchase of goods. The buyer of such goods will not get any credit of taxes paid.

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

Dear Libissa

First of all to remain in composition secheme your Aggregate Turnover need to be below 50 lac .

else yes can be opt composition & pay 6% on turnover.

But in my view you should opt regular scheme with ITC , can charge & collect GST from customer.

and Regular scheme without ITC , need to reverse the ITC as per Rule 42 or 43 as applicable. (Need to more calculations)

Refer Notification 1 & 2 CT (r)