To address the concerns of micro, small and medium entrepreneurs (MSMEs), arising from transition to the GST regime, the Government has decided to extend the time limit for filing intimation for Composition Levy (filing of intimation FORM GST CMP-01) up to August 16, the Finance ministry said in a press release in New Delhi.
The Government is mindful of the concerns of tax payers, especially the small taxpayers, arising from transition to the GST regime from 1st of July, 2017.
With a view to ease the compliance burden of provisionally migrated small taxpayers opting to pay tax under the Composition scheme, it has been decided to extend the time limit for filing intimation for Composition levy (filing of intimation FORM GST CMP-01) up to 16th August, 2017.
Similarly, the taxpayers who were provisionally migrated by virtue of being registered under the existing laws, but who are no longer required to be registered under GST, the period of applying for cancellation of registration is being extended up to 30th September, 2017.
Earlier the deadline was till 21st of July.
According to governments data (Source: PIB), small taxpayers with an aggregate turnover in a financial year up to Rest. 50 lakhs shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover during the year without the benefit of ITC.
The rate of tax for CGST and SGST/UTGST each shall not exceed – 2.5 percent in case of restaurants etc; 1 percent of the turnover in a state/ UT in case of a manufacturer; 0.5 percent of the turnover in state/UT in case of other suppliers.
A taxpayer opting for composition levy shall not collect any tax from his customers nor shall he be entitled to claim any input tax credit.
The composition scheme is optional. Taxpayers making inter-State supplies shall not be eligible for composition scheme.
The government, may, on the recommendation of GST Council, increase the threshold for the scheme to up to rupees one crore, data said.
Sources : SME Times
We have launched Single Platform on GST Compliances In India, assisting in 4 areas – 1) Migration, 2) GST Compliance, 3) Training and 4) Transition & Implementation. Click this link for any assistance