Skip to main content

Composition scheme under GST may return

By
Composition scheme under GST may return
Only 1 mn entities opted for the scheme, meant for specific small businesses
The composition scheme, which is applicable to specific categories of small businesses whose turnover is Rs 75 lakh and below and had been closed on August 16, may return soon.

With just aboutamillion taxpayers opting for the scheme, the goods and services tax (GST) Council will consider reopening the window in its meeting on Saturday in Hyderabad, giving another opportunity to small players to avail of it. “Smaller players reportedly faced challenges with respect to registration.

Some wanted more time to evaluate their business models to comply with the requirements of the composition scheme.So, we want to give them another chance,” saidasenior government official.
The popularity of the scheme was increasing, when the scheme ended, with 9,80,000 entities registering for it by August 16, compared to just about 100,000 as of July 21, the earlier deadline.

In other words, about 11 per cent of the GST taxpayers have opted for the scheme.The scheme is applicable to certain categories of small taxpayers —traders, restaurants, and manufacturers/suppliers.

One per cent GST is levied on traders, two per cent on manufacturers, and five per cent on restaurants.The eligibility threshold was raised to Rs 75 lakh, from Rs 50 lakh decided earlier.

Acomposition dealer needs to furnish one return, i.e., GSTR-4, onaquarterly basis and an annual return in Form GSTR-9A, against three forms every month by others.According to the current rules, those who did not register by August 16 can have an opportunity next year.

If approved by the Council, those with incomplete registrations will also getachance to opt for the flat rate scheme.Revenue Secretary Hasmukh Adhia, in an address at the Business Standard

GST Round Table in New Delhi on Wednesday, pointed out that at least 1.1 million people had not completed their registration with the GST Network.He urged them to fill PartBof the form.

Another official said: “We are not looking at expanding the scope of the scheme or the threshold as of now. It is about reopening the window to give another chance to taxpayers to opt for the scheme. It will require amending the rules and law.”

The Business Standard, New Delhi,08th September 2017

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Healthy balance sheets augur well for economy: RBI Governor Sanjay Malhotra

By
  Large tariffs by the United States administration and elevated geopolitical risk have increased near-term global financial stability risks, and along with weather events pose downside risks to domestic growth, Reserve Bank of India(RBI) Governor Sanjay Malhotra said in the foreword to the Financial Stability Report released today.Noting that domestic growth momentum is buoyed by strong domestic drivers, sound macroeconomic fundamentals and prudent policies, Malhotra said: “External spillovers and weather-related events could pose downside risks to growth.”On the other hand, he said the outlook for inflation is benign, and there is greater confidence in the durable alignment of inflation with the Reserve Bank’s target.Commenting that the structural shifts reshaping the global economy are making policy intervention challenging, the Governor emphasised the need for central banks and financial sector regulators to remain vigilant, prudent and agile in safeguarding their economies and...
Post a Comment
Read more