- 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.