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Composition scheme

ANURAG MISHRA (56 Points)

18 June 2020

what is limit of composition for traders in f.y. 18-19

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KRISSHNAN KP (4215 Points)
Replied 18 June 2020

Minimum turnover must be 20lak

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Shivam RC (Student) (23683 Points)
Replied 18 June 2020

Composition Scheme is a special scheme designed for the small taxpayers to reduce the tedious work of maintaining Books of Accounts and monthly Return compliance burden.

The threshold turnover limit to opt for GST Registration is as follows :

(a). Rs. 20 lakhs incase of Supplier of Services.

(b). Rs. 20 lakhs incase of Mixed Supplier ( Supplier of both Goods and Services ). [ Rs. 10 lakhs in case of Special Category States ].

(c). Rs. 40 lakhs incase of Suppliers dealing in EXCLUSIVE SUPPLY OF GOODS.

Now once you become liable for GST Registration ( threshold limit crosses ), you have two options :

(1). Opt for REGULAR REGISTRATION U/s 9.
(2). Opt for COMPOSITION SCHEME U/s 10.

Now if you want to opt for Composition Scheme, you have to satisfy certain conditions. There's a maximum statutory turnover limit of Rs. 1.5 crores ( Rs. 75 lakhs incase of Special Category States ) to opt for Composition Scheme. Therefore if your turnover is upto the prescribed turnover limit, you can opt for the Scheme.

In 2019, W.E.F. 01/04/2020, a New Composition Scheme was introduced for the Suppliers dealing in Exclusive Supply of Services provided their Aggregate Turnover does not exceeds Rs. 50 lakhs.

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