The Government has opened the option for GST Composition Scheme for the assessment year 2017-18 for small traders. The persons who want to avail the benefit of the scheme can apply till September 30th.
The 21st meeting of the GST Council on last week has decided to re-open registrations for small businesses under the composition scheme, after the plan received lukewarm response, with only 10 percent of total taxpayers under Goods and Service Tax (GST) opting for it.
Composition scheme is an alternate method of taxation, which allows small businesses with annual turnover up to Rs 75 lakhs, to pay tax at a concessional rate, as well as reduce the compliance cost. The revenue threshold is Rs 50 lakhs for dealers across nine states including Arunachal Pradesh, Nagaland and Tripura among others. The enrollment into the plan is optional.
The number of dealers opting for the composition scheme under GST was 9.38 lakhs as of August 16, which marked the deadline towards signing up for the scheme. The previous cutoff date for the scheme was Jul 21, which was extended by nearly four weeks.
