Businesses can opt for composition scheme on GSTN portal from Wednesday1 min read . Updated: 04 Jul 2017, 06:05 PM IST
Small businesses with a turnover of Rs20-75 lakh can opt for the GST composition scheme in which traders, manufacturers and restaurants can pay tax at 1%, 2% and 5%, respectively
New Delhi: With 3.58 lakh new registrations over the past 10 days, goods and services taxt network (GSTN) from Wednesday will provide an option on its Web portal to businesses that would like to opt for the composition scheme.
The registration facility for input service distributors (ISDs) will start from Wednesday and that of TCS and TDS deductors will open some time after 20 July, GSTN chairman Navin Kumar said.
Under the GST framework, businesses have to register with GSTN—the IT backbone—following which they are given a provisional ID which can be used for transactions and filing tax returns.
“More than 3.58 lakh new registrations have come in since 25 June. Also, more than one lakh existing excise, service tax and VAT assessees have migrated to the GSTN portal in the last 10 days taking the total migration tally to nearly 68 lakh," Kumar told PTI.
Beginning from Wednesday, the GSTN portal will start a facility for registered businesses to indicate their option for the composition scheme. “Taxpayer can log into their account in the GSTN portal and choose the option of the composition scheme. The option would remain open and they can choose it anytime they want," Kumar added.
Taxpayers with an annual turnover of up to Rs20 lakh—0 lakh in the North-East and special category states—are exempt from the GST. Small businesses with a turnover of Rs20-75 lakh can opt for composition scheme in which traders, manufacturers and restaurants can pay tax at 1%, 2% and 5%, respectively.
Businesses opting for the composition scheme will see a lesser compliance burden as they will have to file returns only once in a quarter as against monthly returns to be filed by other businesses. “The GSTN software is working fine and when businesses are facing problem with registration, the help desk is on its toes to solve the problem," Kumar said.
Implemented from 1 July, the GST unifies 17 different taxes and creates a single tax for the entire nation for seamless movement of goods and services. An input service distributor (ISD) receives input tax credit for goods and/or services received by him from the supplier.