Today let us talk about the GST Composition Scheme
The composition scheme allows registered taxpayers under GST whose turnover in the preceding financial year was less than Rs 75 lakh to pay a percentage of their yearly turnover in a state as tax. This relieves the taxpayers from collecting tax from their customers directly and provides other benefits as well:
There are certain conditions that you must meet in order to register under GST composition scheme
Those not eligible for the composition scheme include:
If it turns out that an ineligible taxpayer enters into the composition scheme, he will later be liable to pay the differential tax along with a penalty.
You don’t need to file forms every year to pay composition levy. However, you do need to notify the government if you become ineligible for the composition scheme. You can do so by filing Form GST CMP-04 within seven days of becoming ineligible.
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