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Changes in Composition Scheme | Latest Notification related to Composition Scheme | Composition scheme tax rate under GST

Changes in Composition Scheme | Manufacturer will have to pay tax1% instead of 2%

In the 23rd GST Council Meeting, various changes have been made in the Composition Scheme, and notification of change tax rate have been issue on dated 01.01.2018, These Changes are as follows: -(Tax Rate For Composition Scheme)

1.After the Changes, Tax Rate are as follows:-(composition scheme rate under gst)

Category Rate of Tax, and Changes  (composition scheme rate under gst)
Manufacturers: Uniform rate of tax @ 1% under composition scheme ( Notification No.1/2018- Central Tax, dated -01.01.2018  )
Traders:

 

For traders, turnover will be counted only for supply of taxable goods; thus no 1% tax on exempted goods and Uniform rate of tax @ 1% under composition scheme.
Restaurant:
No change for composition scheme for restaurant. Uniform rate of tax @ 5% under composition scheme (Not Serving alcohol)

(composition scheme rate under gst)

  1. Turnover eligibility

Eligibility for composition will be increased to Rs. 1.5 Crore per annum ( CGST and SGST Acts to be amended)

  1. Supply of Service

Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed by exempting the same.

 Latest Notification related to Composition Scheme

  1. Waives the late fee payable for failure to furnish the return in FORM GSTR-4 (Notification No- 73/2017-Central Tax, Date- 29-12-2017)
  2. Manufacturer will have to pay tax1% instead of 2% (Notification No. 1/2018- Central Tax, dated -01.01.2018 )

Other GST Post

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Recommendations made by the GST Council in the 23 meeting

Chetan Khandelwal

Education- M.Com, CA Final, LL.B Practice:- Tax Law, Corporate Law Etc.

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Chetan Khandelwal

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