Conditions for availing the benefit of 6% under GST new scheme – 

 a) whose aggregate turnover in the preceding financial year was fifty lakh rupees or below b)who is not eligible to pay tax under sub-section (1) of section 10 of the said Act; c)who is not engaged in making any supply which is not leviable to tax under the said Act d)who is not engaged in making any inter-State outward supply; e)who is neither a casual taxable person nor a non-resident taxable person; f)who is not engaged in making any supply through an electronic commerce operator who is required to collect tax at source under section 52 g)who is not engaged in making supplies of ice cream , pan masala , Tobacco and its substitutes. h)The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax i)The registered person shall mention the following words at the top of the bill of supply, namely: – ‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies. j)where one person is opting for the said scheme then all the business under same PAN shall otp for the said scheme k)the registered shall be liable to pay tax under RCM U/s 9(3) and 9(4). l)The registered person opting to pay central tax at the rate of three percent under this notification shall be liable to pay central tax at the rate of three percent on all outward supplies specified in column (1) notwithstanding any other notification issued under sub-section (1) of section 9 or under section 11 of said Act 

Meaning of First supplies of goods or services or both –

For the GST new scheme , it means for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act. Also Read : Relief for Small Taxpayers Link for Download of Notification : Notification No 02/2019 CT-R Dated 07.03.2019.

The post NEW SCHEME IN GST FOR SMALL TAX PAYERS appeared first on GST Platform.

 Government of India has made significant and important changes in composition scheme wef 01.01.2018 regarding tax rate and value of turnover for calculation of tax.Big relief has been given to small taxpayers in GST Composition Scheme from April 2018 

CHANGES IN RATE OF TAX AND VALUE OF TURNOVER FOR COMPOSITE DEALERS

 CBIC has issued a Notification No 1/2018 – CT dated 01/01/2018 dt 01.01.2018 prescribing the rate of tax for composite dealers and turnover for calculating tax. Let’s Discuss….. 

Text of notification is reproduced below:

 “In exercise of the powers conferred by sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.8/2017- Central Tax, dated the 27 th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 647 (E), dated the 27 th June, 2017, namely:- In the said notification, in the opening paragraph, –  (a) in clause (i), for the words “one per cent.”, the words “half per cent.” shall be substituted; (b) in clause (iii), for the words “half per cent. of the turnover”, the words “half per cent. of the turnover of taxable supplies of goods” shall be substituted. In the above notification Tax Rate for composite dealers has been reduced from 1% to .5% for CGST  for Taxpayers specified in Clause (i) of Notification of 8/2017 CT dated 27th June 2017. In simple words , Tax rate for MANUFACTURERS OTHER THAN TRADERS has been reduced from 1% to .5% .  In the same notification in point (b) it has been provided that for the words “HALF PERCENT OF THE TURNOVER“ the words “HALF PERCENT OF TURNOVER OF TAXABLE SUPPLIES“ shall be substituted in clause (iii) of Notification No 8/2017- CT dated 27.06.2017. In simple words, For Traders who have opted for composite scheme will have to pay tax @ .5% CGST and .5% SGST only on TAXABLE SUPPLIES and the value of exempt supplies will not be included in turnover for calculating tax from 01.01.2018.  Also Read : GST NEW RETURN (GST RET 1) Also Read : CHANGES IN GST 

The post Big Relief to Small Tax Payers appeared first on GST Platform.