8 benefits you need to know before you opt for Composition Scheme under GST
Updated on 20 Mar 2018
With all the complexities’ arising under the new Indirect Tax regime, the Government has introduced “Composition Scheme under GST” as a relief to taxpayers having a turnover less than Rs 1.5 Crore. So, mytaxpert brings you the list of benefits of having a turnover of less than Rs.1.5 Crore:
1. Lower tax rate
while the general rate of GST is 5% - 12% - 18% - 28%, the rate under composition scheme is –
|Traders & Manufacturers||1%|
|Restaurants (Not serving Alcohol)||5%|
? Restaurants serving liquor cannot opt for composition scheme.
2. Save costs on book keeping
Tax Payers registered under composition scheme are not required to raise tax invoices; just net sales turnover is required for calculating GST liability.
3. Quarterly payment of taxes
While the regular dealers are required to make payment of net liability monthly, composition scheme dealers are required to pay their liability at the end of each quarter.
4. Quarterly filing of GST return
While the regular dealers are required to file monthly returns, composition scheme dealers are required to file quarterly returns.
5. Simpler Return filing
Regular dealers are required to file 4 returns apart from annual return; they are GSTR-3B, GSTR-1, GSTR-2 & GSTR-3 on a monthly basis. However, dealers under composition scheme are required to file just one return namely GSTR-4 subsuming all the returns above.
6. Higher Liquidity
Since payment of GST is to be made quarterly, that too at a lower rate, the liquidity of enterprise strengthens.
7. Lower payroll expenses every month
With the introduction of GST, all small and medium enterprises needed to increase their staff to pace up with all compliances; however, you need not worry about that since mytaxpert is here your one-stop solution for all GST related compliance.
8. Higher Profits
Since the enterprise saves on book keeping costs, monthly payroll, monthly compliance costs, opportunity cost on monthly payments of GST; all this results in higher profits.
Voila! so now you can save your costs, pay tax at a lower rate, file GST-4 Quarterly and maintain a 100% level compliance under GST regime.
So Let's stop fussing about GST compliance, let mytaxpert look out that aspect for you, so that you can focus completely on ‘growing’ their business and not struggling to just ‘keep it going’.
Signup to receive important updates on taxes & deadlines
People also search for