Friday, Apr 19, 2024 | Last Update : 09:19 AM IST
Businesses under composition scheme to soon start filing GST returns
Around 15 lakh businesses opted for composition scheme, which allows them to pay taxes at a concessional rate.
New Delhi: Businesses which opted for composition scheme in the July-September quarter will get to file their maiden GST returns soon.
Around 15 lakh businesses opted for composition scheme, which allows them to pay taxes at a concessional rate and makes compliance easy, till September under the Goods and Services Tax (GST) that rolled out from July 1.
"We are ready with GSTR-4 which will be used by composition scheme businesses for filing returns. The utility will be available on GSTN portal soon," GST Network CEO Prakash Kumar told PTI.
As per the GST laws, for July-September quarter businesses, with turnover of up to Rs 75 lakh, opting for composition scheme can file quarterly returns and pay taxes.
The scheme is optional under which manufacturers other than those of ice cream, pan masala and tobacco products have to pay a 2 per cent tax on their annual turnover.
The tax rate is 5 per cent for restaurant services and 1 per cent for traders.
There are over 1 crore registered businesses under the GST, which has amalgamated over a dozen taxes to make India a single market for seamless flow of goods and services.
The GST Council had earlier this month raised the turnover threshold from Rs 75 lakh to Rs 1 crore for businesses to opt for the scheme.
Hence, those with turnover of up to Rs 1 crore can take advantage of composition scheme beginning October 1.
Also, a group of state finance ministers have been set up to make the scheme more attractive.
The objective behind the composition scheme is to bring simplicity and reduce the compliance cost for small taxpayers.
As per the Central GST Act, businesses are eligible to opt for the composition scheme if a person is not engaged in any inter-state outward supplies of goods and not into making any supply of goods through an electronic commerce operator who is required to collect tax at source.
While a regular taxpayer has to pay taxes on a monthly basis, a composition supplier is required to file only one return and pay taxes on a quarterly basis.
Also, a composition taxpayer is not required to keep detailed records that a normal taxpayer is supposed to maintain.
