Rate of Tax and draft formats on Composition Levy under GST Act/Rule

Composition Scheme Under GST

The Indian Govt. wants to roll out The Historic Goods and Service Tax regime of business compliance in India- From- July 1, 2017, Large Organizations have the requisite resources and expertise to address these requirements. On the other side, many startups and Small Enterprises may struggle to comply with these provisions. The solve this problem the Indian govt. has introduced Composition Scheme under GST.

Eligible for Composition Levy

The registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may eligible for Composition levy under section 10.

Rate of tax of the Composition Levy

The category of registered persons, eligible for composition levy under section 10 and these rules, specified in column (2) of the Table below shall pay tax under section 10 at the rate specified in column (3) of the said Table:

Sl No.	Category of registered persons	Rate of tax
1	Manufacturers, other than manufacturers of such goods as may be notified by the Government	2%
2	Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II	5%
3	Any other supplier eligible for composition levy under section 10 and these rules	1%

List of Composition Scheme Formats

Sr. No.	Form No.	Description
1.	GST CMP-01	Intimation to pay tax under section 10 (composition levy) (Only for persons registered under the existing law migrating on the appointed day)
2.	GST CMP-02	Intimation to pay tax under section 10 (composition levy) (For persons registered under the Act)
3.	GST CMP-03	Intimation of details of stock on date of opting for composition levy (Only for persons registered under the existing law migrating on the appointed day)
4.	GST CMP-04	Intimation/Application for withdrawal from composition Levy
5.	GST CMP-05 N	Notice for denial of option to pay tax under section 10
6.	GST CMP-06	Reply to the notice to show cause
7.	GST CMP-07	Order for acceptance / rejection of reply to show cause notice
8.	Form GSTR-4	Quarterly Return for compounding Taxable persons
9.	Form GSTR-4A	Details of inward supplies made available to the recipient registered under composition scheme on the basis of FORM GSTR-1 furnished by the supplier

Advocate Kamlesh Kumawat

Education- B.Com, LL.B Specialization in -Tax Law, Civil, Property,Corporate, Banking,Patent, Trade mark, Copyright Etc. Practice Courts - Rajasthan High Court and City Civil court and Sessions Court