GST registration for Hardware retail business

Thanks

Can I switch regular to composition scheme

Just got the GST no on regular tax payer

Originally posted by : Vivek
	Thanks Can I switch regular to composition scheme Just got the GST no on regular tax payer

Composition scheme needs to be availed prior to application incase of new registration or prior to Financial year by intmating the dept. 

Composition scheme cannot be availed once opted out for regular scheme during a FY.

No Question of ITC claim arises incase of composition dealer anyway

Yes once your application is approved as a regular tax payers on new registration you cannot opt for composition scheme during the rest of the financial year until any relaxation is announced by the government.

Hi Vivek,

Since you have already registered your business under regular scheme, you will not be able to opt for the composition scheme for FY 20-21. So till march 2021, you should consider few points in order to decide whether to continue under regular scheme or opt composition scheme. 

1) Whether you are able to maintain proper stock records?

2) Whether you are able to do book keeping on regular monthly basis? 

3) Whether you are selling goods pan India ?

if the answers are affirmative, then you should continue under regular scheme only. 

You will be surprised to find that if your business require substantial amount of stock , then you might not have to pay gst in cash at all or icash payment of gst will be very small amount. 

Composition scheme will restrict your business to your state only. 

So regular scheme is always beneficiary in most of the case. 

But if you want to get rid of monthly compliance and simply pay tax on your sales amount then composition scheme will be a good option for you. 

I can provide you proper analysis based on your financial projection for FY 20-21 and calculate your cash outflow for the year under both the schemes. You can contact us caparth @ parthdshah.com