23rd July 2017
On 21st July government extended the deadline for registering under the GST composition scheme to 16th August. This step is taken by the government in order to make sure that all the small business entities that were not able to obtain registration under this scheme earlier, can now opt for this scheme.
Small traders, manufactures and dealers whose annual turnover is less than 75 lakhs are empowered to opt for this scheme. Under this scheme, traders, manufacturers and restaurants can pay tax at 1%, 2% and 5 % respectively. The main purpose behind the introduction of this scheme was to reduce the burden of compliances on small businesses. A person registering under the composition scheme will be required to file only a quarterly return as compared to three monthly returns.
To obtain registration under the composition scheme the taxpayer needs to log into his account at the GST portal www.gst.gov.in and select ‘Application to opt for the Composition Scheme’ under ‘Services’ menu. They have to fill up the Form GST CMP-01 to opt for the scheme.
In spite of the various benefits of composition scheme, small business entities are not showing interest in opting for this scheme. As against the expectations, only 1.25% of the total registered taxpayers had opted for composition scheme till now.
With the extension in deadline to opt for composition scheme, it is expected that more small entities will opt for this scheme.
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