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TMI BlogComposition Levy Scheme in GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... kh for special category States except J & K and Uttrakhand) in the financial year 2016-17 may opt for this scheme. A taxpayer registered under composition levy scheme has to pay an amount equal to certain fixed percentage of his annual turnover as tax to the government. This tax has to be paid on quarterly basis. Such taxpayer does not have to maintain elaborate accounts and records and instead of two monthly statements and a return (which a normal taxpayer has to file under GST), he has to file a simple quarterly return in FORM GSTR-04. The time Limit for GSTR-4 for the quarter July to September, 2017 has been extended to 24th December, 2017 vide Notification No. 59/2017CGST. However, upon opting for this scheme, he cannot issue taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .gov.in). He can file this intimation either before the appointed day (i.e. day on which GST came into force 01/07/2017) or within 30 days (or as extended by the commissioner) of the appointed day (01/07/2017), (which was later extended up to 16/08/2017). If he intimates after the appointed day, he shall not collect GST and issue bill of supply from the appointed day. Further such person has to furnish a statement containing details of stock including the inward supply of goods received from unregistered persons, held by him on the day preceding the date from which he opts for the scheme, in FORM GST CMP-03, within 60 days (or as extended by the commissioner) of the date from which the option for composition levy is exercised. As per Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the scheme either before the appointed day (01/07/2017) or within 30 days (or as extended) of the appointed day, shall be the appointed date. Effective date for registered taxpayer who intimates about opting for the scheme under FORM GST CMP-02, shall be the beginning of the financial year Effective date for a person who applies for fresh registration under Rule 8 of the CGST Rules, 2017 by providing necessary information under part B of FORM GST REG01, shall be the effective date of registration as per sub rule 2 or 3 of Rule 10 of CGST Rules, 2017. 5. Persons who are not eligible for the scheme. Barring few exceptions, all registered taxable persons whose aggregate turnover has not exceeded Rs. One crore (Rs. 75 lakhs for special c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2016-17 or later. Following goods have been notified for which composition scheme is not available. S.No. Classification (Tariff item/ Chapter) Description 1 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa 2 2106 90 20 Pan masala 3 24 Tobacco and manufactured tobacco substitutes 6. Rate of Tax under the scheme There are three rates prescribed for three different categories of suppliers. * An eligible Manufacturer has to pay 1% (0.5% CGST and 0.5% SGST/UTGST) of turnover in a state or Union Territory, as the case may be. * An eligible person engaged in making supplies mentioned in clause (b) of para 6 of Schedule II of the CGST Act (supplier of restaurant Service) has to pay 5% (2.5% CGST and 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thdraw from the scheme if not eligible 9. Validity of the composition levy scheme A person opting for the composition levy scheme can continue to pay tax under the said scheme as long as he satisfies the eligibility criteria and conditions related to the scheme and do not require to file a fresh application every year. But, such a person shall be liable to pay tax under subsection (1) of section 9 of the CGST Act, 2017 from the day he ceases to satisfy any of the conditions and shall issue tax invoice for every taxable supply made thereafter and he shall also file an intimation for withdrawal from the scheme. 10. Conditions which may render a person in-eligible for the scheme A person is in-eligible for the scheme, if * he wrongly opt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date from which he becomes liable to pay tax as normal taxpayer under section 9 of the CGST Act, 2017. 12. Action for wrongly opting the scheme or for contravention of any provision of the scheme In the scenario, when the proper officer has reason to believe that the registered person has wrongly opted for the scheme or he has contravened the provisions of the scheme, then he will seek a reply by issuing a show cause notice to such person in the FORM GST CMP-05. This notice is to be replied within 15 days of receipt of the same. Thereafter within 30 days of receipt of reply, officer has to issue an order in FORM GST CMP-07, either accepting the reply or denying the option to pay tax under the scheme. Subsequently the registered pers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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