composition scheme

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who optain composition scheme ...when he purchase goods from register dealer...is he liable to pay GST ...??
Replies (9)
yes when composition dealer purchased goods from registered dealers he is liable to pay GST to seller as per invoice...

but he is NOT eligible to take credit of that tax..this tax exp becomes part of cost of stock
could u please explain..how this scheme is helpful..what is the logic..is it not a burden
Firsty understand it is an alternative method Provide by Government to discharge your GST liability..you need to pay simply respective % of sale value. For this you don't need to issue GST invoice you simply issued "Bill of supply." It is majorly applicable on goods ..and only on one service of supply of goods being food or any article for human consumption or any drink(Restaurant).
The objective of this scheme is to bring simplicity and reduce the compliance cost for the Small Taxpayers.
It is basically for Small Taxpayers with an aggregrate turnover in a preceding financial year toRs 1 crore shall be eligible for composition levy
in other case ..tax burden directly paid by..consumer...but in this case he is not collect tax from the consumer..he wil pay fixed percentage tax to the govt...and also he not take input credit
my doubt how this scheme is beneficial to small taxpayer..he doesn't collect tax from customer...he will pay his own money
Firstly I want to add this GST Council in its 23rd meeting decided to revise the said limit to 1.5 crores for states other than those listed in 'special category'.
Now For your Question - To avoid compliance cost as in this case no need to file monthly return quarterly return need to file and For simplicity purpose supplier used this method
For Example - Xerox centre their major activities is Xerox apart from these they also sale stationery items and also many items of food , Now if they segregrate all items with different rates it will cumbursome for him. so they simply follows composition scheme. as major goods they sale on MRP basis.
Aslo take a example of restaurants who have variety of food/ snacks with various GST rates
Thank u... i have one doubt..
if register person purchase goods from composite dealer..
is it purchase..for his business. how to show in his book.is it comes under aggregate turnover..
Definately it is come under Purchase..It cost will little bit higher as cost also include GST component
i didnt get ur point..include gst component means
refer your message box


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