1). Dear Friend, First of all now we can't change from regular to composition , we have to wait for next year. 2). If we took composition scheme we can't take input tax credit on purchase and at the same you can't give output tax invoice, you have give only total invoice bill to the customer. If mostly customer are end users then in that case composition scheme is better. In composition scheme bills maintenance not required.
For example: 1) In case of regular tax purchase 1000 gst @ 18% 180 total bill 1180 same goods sold for profit 100 total taxable value 1280 gst @ 18% 230 total bill value 1510 ultimately you are paying gst 230-180=50. For customer total bill 1510 in regular tax.
2) In composition scheme purchase 1000 gst @ 18% 180 total bill 1180 sold same goods with 100 margin taxable value 1280 gst @ 1% 12.80 total bill value 1292.80 in this case you are paying 12.80 gst For customer total bill value is 1292.80.
@ Shoaib., If you want opt to composition scheme then you ll be wait for next FY 18-19. Bcoz, Opt to composition scheme option is not available now. It's also closed on 18/08/2017...
If you deal your business to end users then you can go to composition scheme... Otherwise you will be consider as your turn over and payments as possibles.... GOOD LUCK...
Shoaib sir, once check the link https://www.profitbooks.net/gst-composition-scheme/ , the above said figures are only for understanding and it is an example only. I don't understand mistake in that example , please help to rectify my mistake. Thanks to all.
Dear Shoaib., If you are the Composition dealer then you can't show the tax value anywhere in your bill and received bills can't take input... You just add your profit in total purchase value then you ll be sale your goods...
@ KONDAL., 1. If regular he ll add profit on goods value only not calculate profit both value. Ex: Purchase value Rs. 1000 + profit Rs. 100 = 1100 + 198 (tax) = Sale Value Rs. 1298...
2. If composition Dealer, Purchase BILL VALUE Rs. 1180 + 100 (Profit) = 1280 (Bill of Supply Value)....
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