The government has extended the deadline by almost four weeks, that is, until 16th August, for small businesses to opt for the composition scheme under the GST regime. Earlier the last date for an option for this scheme in the Good and Services Tax was 21st July 2017, for small businesses whose turnover was up to Rs 75 lakh.
This step has been taken to ease the burden of the provisionally migrated small taxpayers who are going to opt to pay taxes under the composition scheme. Businesses that are opting for this scheme will face a less compliance burden as they will be required to file the return every once in a quarter as compared to other businesses who will be required to file returns monthly. The government has become aware of the concerns of the taxpayers, especially small taxpayers, that is arising due to the transition to GST regime from 1st July 2017.
If a taxpayer wants to opt for the composition scheme can do so by logging into his account in the GST portal and then click on to the ‘Application to opt for Composition scheme’ under the ‘Services’ menu. Further to opt for this scheme, he will have to fill up Form GST CMP-01.
The scheme is beneficial for the traders, manufacturers and restaurants as they will be liable to pay taxes at one percent, two percent and five percent respectively, under the composition scheme. Moreover, if a taxpayer wants to cancel his GST registration, he can successfully do so by 30th September 2017, the finance ministry has said. It said that the taxpayers who were migrated provisionally, by virtue, of being registered under the existing laws, but now they are no longer required to be registered under GST regime, they can apply for Cancellation of Registration, which has also been extended till 30th September 2017.
More than 70 lakh excise, service and VAT taxpayers have migrated to the GSTN portal for filing their returns in the GST regime, which kick-started from 1st July 2017. Along with that, there is more than 8 lakh new taxpayers who have registered on the portal and these taxpayers can opt for the composition scheme during the time of registration in the GST regime.