What is Composition Scheme under GST:

In GST there are too many formalities under various scheme except Composition scheme.Composition scheme is a scheme which is very useful to the taxpayers who's turnover is below 75 Lacs. Composition scheme is beneficial specially for the small tax payers only.

The

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The followingare the main Key Features of Composition scheme:-

1.Turnover must be below Rs. 75 lakhs (Rs.50 Lakhs for North-Eastern States)

2. The dealer who opting Composition scheme is not eligible for Input Tax Credit .

3.Composition Scheme is only for Intra-State supplies.

4.In Composition scheme Tax rates are fixed on total sales turnover.

5.In Composition Scheme the periodicity of filling of Return is Quarterly not Monthly.

6.Composition dealer need not to issue Tax Invoice

7.Composition Dealer need not to maintain records.

The Tax Rates under Composition Scheme are fixed as per the chart below:

Type of Activity	CGST %	SGST/UTGST	Total  %
Manufacturer	1.00	1.00	2.00
Restaurant	2.50	2.50	5.00
Traders	0.50	0.50	1.00

The person registered under composition scheme shall at the top of the bill of supply issued by him, 

mention the words- “not eligible to collect tax on supplies”,because the composite taxpayer is not

eligible to collect tax on the supplies.

Which Central & State Level Taxes are subsumed in GST ?

GST included Central Taxes and State Taxes

Central Taxes:-

1 .Central Excise duty 

2 .Excise Duties (Medicinal & Toilet Preparations) 

3 . Additional Excise Duties (Goods of Special    

Importance) 

4. Additional Excise Duties (Textiles & 

Textile Products) 

5 .Additional Customs Duties (known as CVD) 

6 .Special Additional Duty of Customs (SAD):   

Service Tax 

7.Central Surcharges &  Cesses so far as they relate 

to supply of goods & services

State Level Taxes:-

1.State VAT.

2.Central Sales Tax (CST).

3.Luxury Tax.

4. Entry Tax (all forms).

5. Entertainment & Amusement Tax (except 

when levied by the local bodies).

6. Taxes on advertisements.

7. Purchase Tax.

8. Taxes on lotteries, betting & gambling.

9. State surcharges Cesses so faras they relate
to supply of goods & services.

What is GST :-

GST is a destination based tax .GST avoids cascading effects of the previous taxes.GST is an indirect tax which is subsumed of central and state taxes.GST will unify sixteen different types of taxes including excise duty, VAT and service tax. GST  includes Taxes, cesses and surcharges imposed by states and centre., states and local bodies.The GST would replace the following Central &State taxes in to Single Tax:-

1 .Central Excise duty 

2 .Excise Duties (Medicinal & Toilet Preparations) 

3 . Additional Excise Duties (Goods of Special    

Importance) 

4. Additional Excise Duties (Textiles & 

Textile Products) 

5 .Additional Customs Duties (known as CVD) 

6 .Special Additional Duty of Customs (SAD):   

Service Tax 

7.Central Surcharges &  Cesses so far as they relate 

to supply of goods & services

8.State VAT.

9.Central Sales Tax (CST).

10.Luxury Tax.

11. Entry Tax (all forms).

12. Entertainment & Amusement Tax (except 

when levied by the local bodies).

13. Taxes on advertisements.

14. Purchase Tax.

15. Taxes on lotteries, betting & gambling.

16. State surcharges Cesses so faras they relate
to supply of goods & services.