Goods and Services Tax is set to bring along a new regime of business compliance in India. Large organizations have the requisite resources and expertise to address these requirements. On the flip side, many startups and SMEs may struggle to comply with these provisions. To resolve such scenarios, the government has introduced Composition Scheme under GST which is merely an extension of the current scheme under VAT law.
When opting for the Composition Scheme under GST a taxpayer will be required to file summarized returns on a quarterly basis, instead of three monthly returns as applicable for normal businesses.
Who can opt for Composition Scheme:-Businesses dealing only in goods can only opt for composition scheme. Services providers have been kept outside the scope of this scheme. However, restaurant sector taxpayer may also opt for the scheme.
This holds true if your annual turnover is below Rs 75 Lakhs.
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