Composition Scheme under GST

Meaning of Composition Scheme: 
A scheme which is made for the benefit of small dealer, small manufacturer and small service provider by reducing their burden of compliance. Like: Less number of returns, less maintenance of books and records as compared to general dealer. 

Who can opt for Composition dealer? 
Dealers and manufacturers, who are supplying goods and whose aggregate turnover does not exceed Rs. 75 Lakh in the preceding financial year. In the previous law there is no benefit to manufacturer but the same is given in GST law. 

No benefit is given to the service providers but there is an exception is given to the restaurant service providers as mentioned in clause (b) of paragraph 6 of schedule II. If a restaurant service provider is providing services and aggregate turnover does not exceed 75 lakh in the preceding financial year then he is entitled to opt for composition scheme.

Below are some of the prominent reasons why you should choose to get registered as a supplier under the composition scheme:

• Limited Compliance:  Under the composition scheme, the taxpayer is required to furnish quarterly return only, and thus he need not worry on record keeping and can focus on his business more rather than being occupied in compliance procedures.

• Limited Tax Liability : Another benefit of getting registered under the composition scheme is that the tax rate for such taxpayer is nominal under the GST Law.