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Composition Scheme

manikanta (student) (22 Points)

05 March 2018

When is opting composition scheme under gst is useful?

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4 Replies

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 05 March 2018

If you are manufactureres of goods,dealers and your turnover is not more than 1.5 cr , then you can take the compositon scheme. For restaurants can also utilise this scheme. But their tax liability is 5% , others is 1%. You can't claim the ITC for purchases made by you if you opt for compostions scheme.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 05 March 2018

if restaurant then don't go for composition because in both cases (regular, composition)) it's 5% gst

Mondira Saha (GST) (3925 Points)
Replied 05 March 2018

composition turnover limit still 1 crore whenever gst rule not amend ...

Srinivas Pyata (543 Points)
Replied 05 March 2018

if you don't have Registered person as your major claints and your customers are mainly un registered persons then it is preferred for composition scheme
because if your major customers are registered persons then they may not prefer to buy from you because they will not get ITC if they buy from a person who is opted Composition scheme (composite supplier is not authorized to issue tax invoice) ultimate they have to increase their products price