The Goods and Service Tax Network (GSTN) has enabled the window to opt-in for the GST Composition Scheme for the Financial Year 2022-23.
The eligible person can opt for a GST composition scheme for FY 2022-23 before March 31, 2022.
Who is eligible for the GST composition scheme?
Any taxpayer whose turnover is less than Rs. 1.5 crore can opt the scheme (CBIC has notified the increase to the threshold limit from Rs 1.0 Crore to Rs. 1.5 Crores).
However, you cannot opt for the GST Composition scheme if you –
- ⦁ are/you make any supply of goods which are not liable to be taxed under this Act;
- ⦁ inter-state outward supplies of goods;
- ⦁ Service providers (other than the person engaged in the supply of food and drinks i.e. restaurant services).
- ⦁ supplies through electronic commerce operators who are required to collect tax under section 52;
- ⦁ Producer of pan masala, or tobacco, ice cream;
- ⦁ a casual dealer;
- ⦁ a Non-Resident Foreign Taxpayer;
- ⦁ a person registered as Input Service Distributor (ISD);
- ⦁ and a person registered as TDS Deductor/Tax Collector.
How to opt for the Composition Scheme –
To opt for the Composition Levy, perform the following steps on the GST portal –
- ⦁ login to the Taxpayers’ Interface,
- ⦁ then Go to Services > Registration > Application to Opt for Composition Levy.
- ⦁ Fill out the form as per the form specification rules and submit.
| GST Composition scheme – Applicable GST Rate |
| Type of Business | CGST | SGST | Total |
| Manufacturer and Traders (Only Goods) | 0.5% | 0.5% | 1.0% |
| Restaurant (non-alcohol serviceable) | 2.5% | 2.5% | 5.0% |
Note – GST Composition scheme may be beneficial to one entity, while it may not be for the other. It is advised to take decisions wisely depending upon the target customers and various other factors. We help you in deciding the best scheme for GST, GST Advisory, and other GST Related Services.
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