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
2 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5138 Points)
Replied 19 April 2022
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)
(55052 Points)
Replied 19 April 2022
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)
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)
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