GST composition scheme: Does it work for you?

 The GST law provides for registration of a business either as a regular taxpayer or as a composition taxpayer.

gst

Businesses need to declare their scheme selection selection to the government for each financial year before the beginning of the said year.

Accordingly,or financial year 2022–23, the said selection has to be made by businesses by 31 March 2022. Once a scheme is selected, the taxpayer cannot opt out of it in the remainder of the financial year.

This, therefore, is the appropriat ..time to evaluate the composition scheme, its key advantages and disadvantages.

The composition scheme is essentially a relaxed mechanism for managing GST compliances, prescribed mainly for small businesses.

The scheme has come a long way since its introduction in 2017 when it was prescribed only for small businesses (traders and manufacturers) with an annual turnover up to INR 50 fifty lakh.

Subsequently, upon representations from the industry, the turnover threshold was increased to INR 1.5 crore, and the scheme was extended to limited service providers as well.

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