Composition person is required to furnish only one return i.e. GSTR-4 on a quarterly basis and an annual return in FORM GSTR-9A.
A registered taxpayer, who is registered under the Composite Scheme will pay tax at a rate not more than 1% for manufacturer, 2.5% for restaurant sector and 0.5% for other suppliers of turnover. Composition Scheme Under GST
Composition scheme can be opted by filing form GST CMP-02 online:
- At the time of getting registered under GST act or
- Opt prior to the begining of any financial year
The taxpayer who opted for composition scheme under GST can only issue bill of supply instead of Tax invoice He has to mention in the bill of supply as "composition taxable person, not eligible to collect tax on supplies" He should mention "composition taxable person" in the sign boards and notice boards at the principal place of business and all other additional business places. Violating the Composition scheme attracts severe penalty and Interest
Form GSTR-4 has to be filed electronically on or before 18th of the succeeding month followed by the quarter during the period of supply which contains the turnover information and inward supplies of goods and services, tax payable to the relevant period on quarterly basis.
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