composition levy ppt - tnkpsc.com · effective date for composition levy ere intimation is filed 2....

6/29/2017 1

1

6/29/2017 2

Turnover in the preceding




financial year 75

financial year 75

financial year 75

financial year 75 Lacs

Lacs

Lacs

Lacsor

or or

or

less

less

less

less

(VidenotificationNo08/2017dated

27th

June,

2017,lim

ithavebeenincreasedfrom

50Lacs

to75

Lacsexceptsomestates*)

* For manufacturing (1% + 1%)




* For restaurants (2.5% + 2.5%)




* For others (0.5% + 0.5%)

* For others (0.5% + 0.5%)

* For others (0.5% + 0.5%)

* For others (0.5% + 0.5%)

2* See next slide

6/29/2017 3

�As per section 10(1), Notwithstanding anything to the

contrarycontained in this Act, but

�subject to the provisions of sub-sections (3) and (4) of

section 9

�a registered person

Whether Composition Dealer is liable to pay tax under RCM?




�a registered person

�whose aggregate turnoverin the preceding financial yeardid

not exceed seventy fifty lakhrupees* , may opt to pay, in lieu

of the tax payable by him, an amount calculated at such rate

as may be prescribed

* GST Council has increased the amount from Rs. 50.00 Lakhto

Rs.75.00 Lakhby notification 08/2017 dated 27thJune, 2017

3

6/29/2017 4

IN THE FOLLOWING STATES THE AGGREGATE TURNOVER IN THE








PRECEDING FINANCIAL YEAR SHALL NOT EXCEED Rs. 50 LACS:








1.Arunachal Pradesh,

2.Assam,

3.Manipur,

4.Meghalaya,

4

4.Meghalaya,

5.Mizoram,

6.Nagaland,

7.Sikkim,

8.Tripura,

9.Himachal Pradesh

6/29/2017 5

Persons not eligible to opt composition scheme




Supplier of services except




restaurant service

restaurant service

restaurant service

restaurant service

Who is engaged in making




any supply of goods which




are not

are not

are not

are not leviable

leviable

leviable

leviableto tax

to tax

to tax

to tax

under this act

under this act

under this act

under this act

Inter

Inter

Inter

Inter- ---state supplier of goods

state supplier of goods



Supplying goods through e



Supplying goods through e- ---

commerce operator

commerce operator

commerce operator

commerce operator

under this act

under this act

under this act

under this act

Manufacturers of such




goods as may be notified




5

6/29/2017 6

S. No.

S. No.

S. No.

S. No.

Classification

Classification

Classification

Classification

(Tariff item /

(Tariff item /

(Tariff item /

(Tariff item /

Chapter)

Chapter)

Chapter)

Chapter)

Description

Description

Description

Description

1.

2105 0000

Ice cream and other edible ice, whether or not

containing cocoa.

Manufacturers of goods not eligible for composition scheme








containing cocoa.

2.

2106 9020

Pan Masala

3.

Chapter 24

Tobacco and m

anufactured tobacco

substitutes

6

6/29/2017 7

Composite

Dealers

topay

tax

only

on

Composite

Dealers

topay

tax

only

on

Taxable

Supply

ORTotalTurnoverincluding

exemptedsupply.

7

6/29/2017 8

8

6/29/2017 9

As

perSection

10(1),

an

amountis

calculated

at

prescribed

percentageoftheTURNOVER

TURNOVER

TURNOVER

TURNOVER

inState

or

turnoverinUnionterritory.

Section2(112)defines“Turnoverin

State”or“Turnoverin

Unionterritory”

meanstheaggregate

valueofalltaxable

supplies(excludingthevalueof

inward

suppliesonwhichtaxis

payable

byapersononreversecharge

basis)andexemptsuppliesmadewithin

aState

orUnionterritory

bya

taxable

person,exportsofgoodsorservicesorboth

and

inter-State

suppliesofgoodsorservicesorboth

madefromtheStateorUnionterritory

bythesaid

taxable

person

butexcludescentraltax,State

tax,Union

territorytax,integratedtaxandcess.

9

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10

Although official

Although official

Although official

Although official

twitter handle of

twitter handle of

twitter handle of

twitter handle of

GST has also

GST has also

GST has also

GST has also

clarified, these

clarified, these

clarified, these

clarified, these

10

clarified, these

clarified, these

clarified, these

clarified, these

answers are only

answers are only

answers are only

answers are only

for educational

for educational

for educational

for educational

purposes only.

purposes only.

purposes only.

purposes only.

6/29/2017

11

Transition from Composition to Regular Dealers








Aregisteredperson,whowaspayingtaxunderCompositionScheme,shallbe

entitled

entitled

entitled

entitledto tototo

take

take

take

take,inhiselectroniccreditledger,credit

credit

credit

creditofeligibledutiesin ininin

respect

respect

respect

respect

of

ofof

ofinputs

inputs

inputs

inputsheld

held

held

heldin inininstock

stock

stock

stockontheappointeddaysubjectto

thefollowingconditions:

a)Suchinputsorgoodsare

usedmakingtaxablesupplies;

b)Thesaidregisteredpersonisnotpayingtaxundersection10;

11

b)Thesaidregisteredpersonisnotpayingtaxundersection10;

c)Thesaidregisteredpersoniseligibleforinputtaxcreditonsuchinputs;

d)Thesaid

registeredpersonis

inpossessionofinvoiceorotherprescribed

documents

evidencingpaymentofduty

undertheexistinglawin

respectof

inputs;and

e)Suchinvoicesorotherprescribeddocuments

were

issuednotearlierthan12

monthsimmediatelyprecedingtheappointedday.

6/29/2017

12

�The

goodsheld

held

held

held

in inininstock

stock

stock

stock

byhim

on

the

appointeddayhavenotbeenpurchasedin

thecourseofinter-State

tradeorimported

from

aplaceoutsideIndia

orreceivedfrom

his

branch

orfrom

his

agentorprincipal

MIGRATION FROM APPOINTED DATE




his

branch

orfrom

his

agentorprincipal

outside

the

State,

where

the

option

isexercisedundersub-rule(1)ofrule1;

�thegoodsheld

instockbyhim

havenot

been

purchased

from

an

unregistered

supplierandwhere

purchased,hepaysthe

taxundersub-section(4)ofsection9;

12

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13

�The

Person

who

optto

pay

tax

under

compositionschemecannotcollecttax.

�AllpersonswithsamePANshalloptto

pay

ornotto

payundercompositionscheme.

CONDITIONS TO FOLLOW UNDER THIS SCHEME




ornotto

payundercompositionscheme.

�During

the

year

ifaggregate

turnover

exceedslimitspecified,shallpaytaxu/s9

fromthatday.

�Ifonewhowasnoteligibleforschemebut

opted

same,he

shall

be

liable

topay

penaltyu/s73or74,besidestaxunder

otherprovisionsofAct

13

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14

�CompositeDealer–Neitheracasualtaxable

personnoranonresidentperson

�RP

shall

mention

the

words

“Composition

“Composition

“Composition

“Composition

taxable

taxable

taxable

taxable

person,

person,

person,

person,not

not

not

noteligible

eligible

eligible

eligible

to tototocollect

collect

collect

collecttax

tax

tax

taxon

onon

on





taxable

taxable

taxable

taxable

person,

person,

person,

person,not

not

not

noteligible

eligible

eligible

eligible

to tototocollect

collect

collect

collecttax

tax

tax

taxon

onon

on

supplies”

supplies”

supplies”

supplies”atthetop

ofthebillofsupply

issuedbyhim;and

�RP

shall

mention

the

words

“Composition

“Composition

“Composition

“Composition

taxable

taxable

taxable

taxableperson”

person”

person”

person”onevery

noticeorsignboard

displayed

at

aprominent

place

at

his

principalplace

ofbusiness

and

atevery

additionalplaceorplacesofbusiness.

14

6/29/2017

15

�Taxable

Person

liable

topaytaxundercomposition

schemeshallfile

return

of

inward

supply,taxpayable,

taxpaid

etc

by18

1818

18th thththofofofofthe

the

the

the

�GSTR

GSTR

GSTR

GSTR

4 444A AAA

& &&&4 444

For

composition

person

shall

contain

�Inward

supplies

invoice

FILING OF RETURNS FOR COMPOSITE DEALERS




taxpaid

etc

by18

1818

18th thththofofofofthe

the

the

the

end

end

end

endof

ofof

ofthe

the

the

theQuarter

Quarter

Quarter

Quarter. ...

�Inward

supplies

invoice

wise

detail

(whether

interstate

orintra,from

RP)

andconsolidateddetailof

outward

supplies

�Debit

and

Credit

Notes

Received

15

6/29/2017

16

�A Person paying tax under

composition scheme, shall file

Annual Return in GSTR

GSTR

GSTR

GSTR- ---9A.

9A.

9A.

9A.

Annual Return

Annual Return

Annual Return

Annual Return

�The Invoices shall be issued

with prescribed particulars. In

case of supply of < Rs. 200/-

to URP, the supplier can issue a

consolidated invoiceat the

close of each day

16

6/29/2017

17

Availability of Credit




Ceases to pay tax under




section 10

section 10

section 10

section 10

Entitled to take credit of input tax

in respect of goods held in stock

and on capital goods on date

immediately preceding the date

from which he becomes liable to

from which he becomes liable to

pay tax under Section 9.

Opt to pay tax under section




10

1010

10

Pay an amount by way of debit in

electronic cash/credit ledger

equivalent to the amount of ITC

held in stock and capital goods

reduced by such percentage

points as maybe prescribed.

17

6/29/2017

18

18

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19

Intimation of Composite Levy




Granted

registration on

provisional basis

Applies for new

registration

Registered person

who opts to pay

tax u/s 10

File an intimation in Form

GST

CMP-01 not later than 30 days

form

the said day and furnish

statement in FORM GST CMP-03

within 60 days from A.D.

May give an option to pay tax

under section 10 in Part B of

FORM GST REG-01

File an intimation in Form

GST CMP-

02 prior to the FY for which option

exercised and furnish statement in

FORM GST ITC-03 within 60 days

from commencement of FY.

•Any intimation for any place of business in any State/UT shall be deemed to be an intimation for all

other places of business under the same PAN

19

6/29/2017

20

S. No.

S. No.

S. No.

S. No.

Particulars

Particulars

Particulars

Particulars

Effective Date

Effective Date

Effective Date

Effective Date

1.

Registration on provisional basis

Appointed day where intimation is filed

Effective Date for Composition Levy




2.

Registered person who opts to pay

tax under this scheme

Beginning of thefinancial year where

intimation is filed

3.

NewRegistration

Sub-rule (2) or (3) of Rule 3 of Registration

Rules and the intimation shall be considered

only after grant of registration to the

applicant.

20

6/29/2017

21

a.Theoptionexercisedbyaregisteredpersonto

paytax

undersection10shallremain

validsolongashesatisfies

alltheconditionsmentionedin

thesaid

sectionandthese

rules

b.Thepersonreferredaboveshallbeliable

topaytaxfrom

Validity of Composition Levy




b.Thepersonreferredaboveshallbeliable

topaytaxfrom

the

day

he

hehe

he

ceases

ceases

ceases

ceases

to tototosatisfy

satisfy

satisfy

satisfy

any

any

any

any

of

ofof

ofthe

the

the

the

conditions

conditions

conditions

conditions

mentionedin

section10ortheserulesthenheshallissue

taxinvoiceforevery

taxable

supply

madethereafterand

heshallalsofile

anintimationforwithdrawalfrom

the

scheme

inFORM

GST

CMP-04

within

seven

days

of

occurrenceofsuchevent.

c.Theregisteredpersonwho

who

who

whointends

intends

intends

intendsto tototo

withdraw

withdraw

withdraw

withdrawfrom

the

composition

scheme

shall,before

the

date

of

such

withdrawal,fileanapplicationinFORMGSTCMP-04.

21

6/29/2017

22

d.Where

theproperofficerhasreasons

reasons

reasons

reasonsto tototo

believe

believe

believe

believethatthe

registered

person

wasnot

not

not

noteligible

eligible

eligible

eligible

to tototopay

pay

pay

paytax

tax

tax

tax

under

section10orhascontravened

contravened

contravened

contravenedtheprovisionsoftheAct

ortheserules,hemayissueanoticeto

suchpersonin

FORMGSTCMP-05to

showcausewithin

within

within

within

fifteen

fifteen

fifteen

fifteendays

days

days

daysof

thereceiptofsuchnoticeasto

whyoptionto

paytax





thereceiptofsuchnoticeasto

whyoptionto

paytax

undersection10shouldnotbedenied.

e.Uponreceipt

receipt

receipt

receiptofofofofreply

reply

reply

reply

totheshow

causenoticeissued

undersub-rule

(4)from

theregisteredpersonin

FORM

GSTCMP-06,theproperofficershallissueanorderin

FORM

GSTCMP-07within

within

within

within

thirty

thirty

thirty

thirty

days

days

days

daysofofofofreceipt

receipt

receipt

receiptof

ofof

ofsuch

such

such

such

reply

reply

reply

reply,eitheracceptingthereply,ordenyingtheoption

topaytaxundersection10from

thedate

ofoptionor

from

the

date

of

the

event

concerning

such

contravention,asthecasemaybe.

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23

f.Every

person

who

hasfurnished

an

intimation

intimation

intimation

intimation

undersub-rule

(2)orfiled

an

application

application

application

application

for

for

for

for

withdrawal

withdrawal

withdrawal

withdrawalundersub-rule

(3)ora

person

inrespectofwhom

anorder

order

order

orderofofofofwithdrawal

withdrawal

withdrawal

withdrawalofoption

hasbeenpassedinFORMGSTCMP-07undersub-





hasbeenpassedinFORMGSTCMP-07undersub-

rule

(5),mayelectronicallyfurnishastatementin

FORM

GSTITC-01containingdetailsofthestock

ofinputsandinputscontainedin

semi-finishedor

finishedgoodsheldinstockbyhim

onthedateon

whichtheoptioniswithdrawnordenied,within

within

within

within30

3030

30

days

days

days

days,from

thedate

from

which

the

option

iswithdrawnorfrom

thedate

oforderpassedin

FORMGSTCMP-07,asthecasemaybe.

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24

g.

g.g.

g.Any

Any

Any

Anyintimation

intimation

intimation

intimationorapplication

application

application

applicationfor

for

for

forwithdrawal

withdrawal

withdrawal

withdrawal

undersub-rule

(2)or(3)ordenialofthe

option

topay

tax

under

section

10

inaccordancewithsub-rule(5)in

respectofany

place

ofbusiness

inany

State

or

Union





place

ofbusiness

inany

State

or

Union

territory,shallbedeemedto

beanintimation

inrespectofall

otherplaces

ofbusiness

registeredonthesamePAN.

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By : SURESH K. MITTAL & ASSOCIATES




Contact No. 9810375030




Mail ID: s_mca@rediffm

ail.com


ail.com


ail.com


ail.com

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