The application process for joining the GST composition scheme has started in the upcoming financial year 2020-21. Existing registered taxpayers will have to apply online for this before 31 March 2020 on the GST portal. This scheme is especially for small businessmen. In this, small businessmen have been given many concessions in terms of keeping their accounts, filing returns and collecting taxes.
Under the composition scheme, traders have a special facility to pay a fixed rate, lump-sum tax payment and returns only once a year. This scheme can add taxpayers whose annual turnover is up to Rs 1.5 crore. For seven states of North-East and Uttarakhand, this limit is Rs. 75 lakhs. Businessmen already registered as GST taxpayers will have to provide information in Form CMP-02 of the GST portal to join the composition scheme. The last date for this is 31 March. Businessmen who are taking GST registration for the first time, can join this scheme by giving information in the form CMP-01 on the portal at the time of registration.
Once associated with this scheme, there is no need to give information again in the next financial year. Not only this, taxpayers can also opt-out of this scheme at any time. According to GSTN data, more than 16,82,000 taxpayers are associated with composition schemes. On the other hand, at the National Conference of State and Central Commissioners of GST on Friday, it was proposed to immediately ban the input tax credit to new taxpayers.
At the same time, it is proposed to strictly calculate the profit to be taken in the name of input credit under exports. The conference was organized under the chairmanship of Finance Secretary Ajay Bhushan Pandey. Finance Minister Nirmala Sitharaman was also present in the conference. The GST portal was also reviewed to facilitate taxpayers in the conference.
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