Aug 052017

Under the newly introduced GST regime, the GST Assessee having turnover less than Rs. 75 Lakhs can opt for paying GST under Composition Scheme. There are confusions about whether to go for composition scheme or Regular ITC method in GST. The tool below will help you in taking a decision as to whether to opt for Composition scheme or regular scheme. All you need is only the GST rate of your product and the Profit margin on your products. This tool will give you the result – Whether to select Regular Scheme or Composition scheme.

Click here to download the excel tool.

Download (XLSX, Unknown)

Jul 282017

The Central Government has notified Central GST (Fourth amendment) Rules 2017.

As per the above amendment, the following are the latest amendments in GST

  • Earlier, the last date for migration of the persons registered under existing law (VAT/Service Tax/Excise) was 30 days from the roll out of GST. This date has been extended upto 30th September 2017 as per this notification.
  • It further amends the rate of exchange (in case of foreign exchange) of curreny other than Indian Rupees, for determination of value

The relevant notification is produced below :

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May 312017

Every taxpayer under GST will be allotted a State wise PAN based 15 digit Goods and Services Tax Payer Unique Identification Number (GSTIN). The various digits in the GSTN will denote the following:

How to read your GST Number ?

  • The First two digits represents the State in the Country where the registration is done. For Example, for Tamilnadu the unique code of “33” has been allotted and hence GST number of all assessees in Tamilnadu will start with “33”
  • Next 10 digits represents the Permanent Account Number (PAN) of the taxpayer. In case of Individual Proprietorship firms , the proprietor’s PAN number will reflect here. In case of other entities, the entity’s PAN will appear here.
  • The 13th digit would be alpha-numeric (1-9 and then A-Z) will be the entity code representing the number of registration of the tax payer (having the same PAN Number) within the State. For Example, a taxpayer with single registration within the state would have “1” as the 13th digit of his GSTIN. For the same taxpayer, the second entity will have “2” as the 13th digit of his GSTIN. This way, 35 business verticals of the same legal entity can be registered within a State.
  • The 14th digit of GSTIN would be kept blank for future use. As of now, the letter “Z” is in 14th digit.
  • The 15th digit of GSTIN will be the check digit.

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May 292017

The proposed GST law is going to be implemented very shortly.  Big companies/business houses will have sufficient expertise and work force for complying , maintenance of books of accounts and filing the returns under GST. But on the other side, SMEs, Start ups and small companies/traders will not be having such a big work force for complying with the GST regulations with regard to maintenance of details records, reconciliation etc.,

A separate scheme was available in earlier VAT law. A Similar Scheme is proposed in the GST law also. Let us know about the same in this Article.

Who can opt for Composition Scheme under GST ?

Assessees who deal in goods (either trader or manufacturer) can opt for this Composition scheme.

Can a person providing Services opt for this scheme?

No. This is applicable only for dealers dealing with goods (Traders/Manufacturers).

What is the rate of tax (GST) Payable under Composition Scheme?

Type of Dealer Rate of Tax











Others (Retailers/wholesalers)





Is this Scheme Compulsory for Small Assessees ?

No. This is optional. If the small dealers do not wish to opt for this scheme, they can opt for regular scheme of Input Credit based scheme.

How to opt for this Scheme?

The assessees who intent to opt for this scheme shall make an application exercising this option to pay tax under this scheme. Once this is approved , it is valid until it is cancelled or he becomes ineligible.

Should the assessee opt for Composition scheme for all businesses across India

Yes. Since the assessee is covered under same PAN all over India, he needs to opt for Composition scheme across India.

Can Composition dealer make Inter state sales?

No. An assessee opting for composition scheme cannot make Inter state sales. (ie) Sale from one state to another


Can  composition dealer collect Tax from his customers?

No. The composition dealer cannot collect tax from his customers in the Invoice. The tax payable (0.5%, 1% or 2.5%) as the case may be shall be on the bill value payable by the composition dealer.

Can composition dealer claim the Input Tax credit?

No. The Input tax Credit (Tax paid on the purchases) cannot be claimed by the composition dealer.

Can the customer who buys from Composition dealer claim Composition tax as Input tax Credit?

No. A customer who buys from the Composition scheme dealer is not eligible to claim the tax paid under Composition scheme as Input Tax Credit.

What happens if a Composition dealer violates any of the conditions after opting for the scheme?

If any assessee violates any conditions of the Composition scheme, he will be liable to pay taxes as applicable to a regular dealer along with a penalty of equivalent amount.

How to calculate the aggregate turnover?

Aggregate Turnover = Value of All taxable supplies + exempt supplies + Export Turnover

What are the return filing obligations of the Composition dealer?

The Composition dealer shall file the following forms :-

Form GSTR – 4                    –              Quaterly Return – to be filed on a Quarterly basis

Form GSTR – 9 A                –              Annual Return – to be filed on Annual basis

What are the relevant forms for Composition scheme ?

The option of Composition levy can be filed electronically through form GST CMP-01

What happens if a Composition dealer buys goods from a unregistered dealer

The composition dealer who purchases goods from an unregistered dealer shall pay taxes due on the same on reverse charge basis.

What happens if a composition dealer fails to file Quarterly returns

Consequence 1 :-             A penalty for non filing @ Rs. 100/- per day upto maximum of Rs. 5000 is                                               payable.

Consequence 2 :-             If Quarterly returns are not filed for 3 consequtive tax periods (Quarterly),                                          the registration under the GST will be cancelled.

Should a Composition dealer maintain detailed records?

No. Compared to Normal dealer, Composition scheme dealer need not maintain detailed records under GST.

Comparitive Analysis under Regular Scheme & Composition Scheme

Particulars Regular
Gross Tax @ 10% Gross Tax @ 10%
Purchases 100 10 100 10
Sales 120 12 120 1.2
Net Tax Payable 2 1.2
Net Out flow (for taxes) 2 11.2*
* Tax on Sales Rs. 1.20 plus Tax on purchases Rs.10/-

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Oct 242015

The empowered committee on GST has published its report on the proposed procedures for GST Returns.

The Salient Features of this report on GST Returns are as follows :-

  1. There will be 8 Forms under GST
  2. All assessees has to file the GST Returns (Including NIL Returns)
  3. The periodicity of Return filing is Monthly , Quarterly & Yearly according to the type of assessee (Regular/Compounding)
  4. Monthly 3 Returns to be filed. (viz.,) Outward Supplies, Inward Supplies and Consolidated return
  5. Automatic update of Purchase invoice details based on the selling dealer’s returns, which can be modified, added, deleted.
  6. The monthly return will be auto-populated based on the other returns filed. However, the tax payer can fill the missing details.
  7. Both Online & Offline mode of filing permitted.
  8. Periodic Upload (daily,weekly etc.,) of information relating to returns permitted.
  9. The return shall be prepared by the assessee himself or through TRP (Tax Return Preparer)
  10. There will be no revision of returns.
  11. The unreported/missing invoices will be taken in the month in which it is intended to be included.
  12. Annual Return shall be filed by all dealers
  13. A reconciliation Statement , duly certified by a Chartered Accountant will have to be filed by those taxpayers whose accounts are required to be audited under section 44AB of the Income-tax Act,1961. Currently, the limit is Rs. 1 Crore.

The copy of the GST Committee report on Returns is provided below. The comments on the same can be given in portal :-

Download (PDF, Unknown)

Source :-



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