Goods and Services Tax (GST) in India

Goods and Services Tax (GST) in India

  • Manufacturer/Service Providers/Trader whose annual turnover is below Rs. 20 Lakh* need not pay any GST and need not register.
  • Those with annual turnover upto Rs. 75 Lakh# can opt for composition scheme in which case the tax rates will be as follows:
GST Rate of Composition
Traders – 1%Manufacturers – 2%Restaurants – 5%
  • In service sector, Composition Scheme for manufacturers of tobacco and manufactured tobacco substitutes, pan-masala & ice-cream and other edible ice, whether or not containing cocoa.
  • The dealers who opt for composition scheme have to file only one quarterly return with details of total turnover. Invoice with details are not necessary, bill of supply will suffice.
  • Small taxpayers are not required to give HSN code in their returns.
  • With online registration, return, payment, refund & other processes, delays and discretions would be reduced.
  • Reduced compliance burden.
  • Special dispensation for job-work to help job workers in the GST regime.

 

*This limit is Rs. 10 Lakh for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Uttarakhand and Himachal Pradesh.
#This limit is Rs. 50 Lakh for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, and Himachal Pradesh.

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