Manufacturers / Service Provider / Trader whose annual turnover is below Rs.20 Lakh* need not pay any GST and need not register.
Those with annual turnover upto Rs.75 Lakh# can opt for composition scheme in which case the tax rate will be as follows:
| GST Rate of Composition | ||
| Traders | Manufacturers | Restaurants |
| 1% | 2% | 5% |
- In Service sector, Composition scheme is available only for one sector – restaurants
- The composition scheme is not available for manufacturers of tobacco and manufactured tobacco substitutes, pan-masala & ice-cream and other edible ice, whether or not containing cocoa.
- The dealers who opt for composition scheme have to file only one quarterly return with details of total turnover. Invoice with details are not necessary, bill of supply will suffice.
- Small tax payers are not required to give HSN code on their returns.
- However, in this option, no input tax credit can be taken on passed on.
- With online registration, return, payment, refund and other processes, delays and discretions would be reduced.
- Reduce compliance burden.
- Special dispensation for job-work to help job workers in GST regime.
*This limit is Rs. 10 Lakh for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Uttarakhand and Himachal Pradesh.
#This limit is Rs.50 Lakh for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh.
