The Government on India has extended the deadline for small businesses to opt for the composition scheme in the goods and services tax (GST) regime. To opt for composition scheme, the taxpayer can now apply up to August 16. After logging into the GST portal, he/she needs to fill up Form GST CMP-01 ‘Application to opt for the Composition Scheme’.
“Extension of time limit for filing intimation for composition levy under subrule (1) of rule 3 of the CGST Rules, 2017 In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017, the Board hereby extends the period for filing an intimation in FORM GST CMP-01 under sub-rule (1) of rule 3 of the Central Goods and Services Tax Rules, 2017 up to 16th August, 2017,” the Central Board of Excise and Customs (CBEC) said in an order.
Traders and manufacturers with an annual turnover of Rs 20 lakh to Rs 75 lakh can opt for the ‘composition scheme’ and pay tax at one per cent and two per cent respectively. Businesses opting for the scheme have a lesser compliance burden as they have to file returns only once in a quarter as against monthly returns to be filed by other businesses.
The scheme exempts tax payers with an aggregate turnover in a financial year up to Rs 20 lakh — Rs 10 lakh in North-East and special category states — from GST. An entity whose aggregate turnover in the preceding financial year is less than Rs 75 lakh can opt for a simplified ‘composition scheme’ where tax will be payable at a concessional rate on the turnover in a state. (RKS)