Composition Scheme : GST
1.0 What is Composition Scheme under GST? The composition Scheme is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 01 Crore ( Rs. 75 lakhs in case of few States * ). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. Moreover, it is optional and the eligible person opting to pay tax under this scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at normal rate. Key-Notes : The turnover threshold for Jammu & Kashmir and Uttarakhand has been fixed at Rs. 01 Crore . * . Few States : Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh. 1.1 Why GST Composition Scheme is introduced? Normally, an assessee under GST has to maintain proper records of Output and Input and pay "Three Monthly Returns every month" plus "One An...