Registration date increased to composition scheme till 31st March, another opportunity for small traders
New Delhi:- GST has given more relief to the small businessmen for paying less tax to the government. The Registration date increased to composition scheme by The government till 31st March.
In such a case, having a turnover of annual turnover of up to Rs 1.50 crore can be used to register tax registration and take advantage of paying less tax. Under the composition scheme, the traders will have to pay tax at the rate of 1 %, 2 %, and 5 %.
Businesses with the turnover of up to 1.50 million can pick up the advantage
Businessmen with the turnover of up to 1.50 million who take composition schemes can also register in the composition scheme but they have to file a monthly return. These returns will go on every 20th of every month. They will also get a lower tax rate benefit. That means that traders having the turnover of 1.50 crore who have taken composition schemes will pay tax at rates of 1, 2 and 5 percent tax rate.
These will be filled quarterly returns
Businesses with the turnover of more than Rs 20 lakh and to Rs 1 crore, which have to take composition scheme, have to file quarterly returns. They will have to file GSTR-4 returns. Under this, the turnover of business, trader, SME or restaurant owner is upwards of Rs 20 lakh and up to Rs 1 crore, which can be registered in the composition scheme.
16 lakh business people have done registration in composition scheme
Recently in the Economic Survey said that about 98 lakh business people have registered in GST in the country. Out of this 16 lakh, cabors have registered in the composition scheme.
Advantages and disadvantages of composition schemes
Under the composition scheme, the traders can also take tax benefits by linking their trading and manufacturing two separate businesses, but the annual turnover of both businesses should be up to Rs 1 crore.
– The GST tax rate will be lowered.