Tuesday, May 8, 2018

Difference Between Composition And Regular GST Registration

(1) What Is Gst Registration?

GST registration is new form of taxes comes in India in the place of various taxes like vat, service tax, custom, entertainment tax etc. It is a one nation tax which has a dream of Indian government for so many years. Now you only need to pay GST in place of other indirect taxes, which has been mentioned above.

(2) Types Of Gst Registration?

There are two types of GST registration one in regular which further divides in to mandatory or optional and the other one is composition registration.

(3) What Is Regular Mandatory And Optional Registration?

Every person whose turnover exceeds 20 lacs or want to sale interstate sale (from one state to another) irrespective of turnover shall, mandatory register themselves in GST registration. 

When a person whose turnover does not exceed 20 lacs but voluntary they want to register themselves it’s called optional registration.

(4) What Is Composition Registration?

Where a businessman who does not want to maintained books of account , or taking input tax credit, or setting off output tax liability, they register themselves in a composition dealer and give flat @1% tax on sale, neither they maintained books nor maintained any details.

(5) Is There Any Monetary Limit For Composition Dealer Registration?

Under GST registration a person can opt for composition registration whose turnover does not exceed 75 lacs can opt for composition scheme.

(6) Is Person Can Change From Composition To Non-composition Or Vice Versa?

Yes, you can change from composition to non-composition or vice versa, but that can be done after on year only, because once you choose for composition or out from composition, that will remain for one year, and you can change after that financial year.

(7) Who Cannot Opt For Composition Scheme?

There are two types of tax payers who cannot opt for composition scheme
(i) Who’s turnover is more than 75 lacs
(ii) Who want to sale interstate sale.
(iii) Service sector industry cannot opt for composition scheme

(8) What Are The Benefits Of Composition Scheme?

There are few benefits available in composition scheme in GST registration , these are
(i) Cannot required to maintained detail records
(ii) Submit tax and tax returns quarterly
(iii) Flat rate of tax @1% on sale
(iv) No need to claim input tax credit
(v) Businessperson does not require following too much guidelines.

(9) What Are The Drawbacks Of Composition Scheme?

There are few drawbacks also available on composition scheme, these are:
(i) No Input tax credit available, hence taxes paid on input would ultimately increase the cost of the product
(ii) No big house is interested to purchase goods from a person who opts for composition scheme, because they cannot claim input tax credit, which they paid on purchase.
(iii) Cannot sale interstate sale.

(10) Is Any Survey Or Inspection Will Be Required For Gst Registration?

Yes, department will conduct a survey , on the premises where you register yourself in GST registration, and give you survey report, but no time has been prescribed in GST act for conducting survey.

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1 comment:

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