GSTN or Goods and Services Tax Network has provided an option on its web portal to the businesses in case they would like to go for the composition scheme. This option has been created after getting more than 3.5 lakh new registrations from the past 10 days.
This registration facility will be available for the input service distributors (ISDs). An input service distributor receives the ITC or input tax credit for goods and services received by him from the supplier. While for the TCS and TDS are deducted, this facility will be made open any date after 20th July’17 as per the GST news.
GSTN is known as the IT backbone of GST. Under the new tax structure of the Goods and Services Tax (GST), the businesses are required to register with GSTN. After the registration, the businesses are given a provisional ID to be used for doing transactions and filing ITR.
GSTN has got the new registrations of more than 3.58 lakh since June 25th. Talking about the existing registrations, more than one lakh existing excise, service tax and VAT assesses have shifted to the GSTN portal in the last 10 days. This makes the combined migration to a whopping 68 lakh.
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Also, the GSTN portal has facilitated by asking the registered businesses to respond to their option of the composition scheme. Using the option of the composition scheme is quite easy and convenient. The GSTN states that the taxpayers can easily sign-in into their account in the GSTN portal and look for an option of the composition scheme. The composition scheme will remain open all the time and people can use it anytime as per their convenience.
The taxpayers who have an annual turnover of not exceeding more than Rs. 20 lakh (In case of the North Eastern states and some special category states the limit is Rs. 10 lakh) will not be levied the GST. The rather small businesses that has a turnover between the range of Rs. 20 Lakhs to Rs. 75 lakh can go for composition scheme. Under the composition scheme, the legal news says, the traders will have to pay a tax of 1%, the manufacturers will have to pay a tax of 2%, and the restaurants owners will have to pay a tax of 5%.
The benefit of opting for the composition scheme businesses is that they will have a lesser compliance burden because they are expected to file ITR only once in one quarter and not monthly filing of ITR. While the businesses that does not chose the option of composition scheme will have to file monthly returns.
Though GSTN software is working fine and no issue has been reported till now, but still as an added measure, GSTN is aided with a help desk where if the businesses are facing problem with registration, they can contact the help desk to solve their issue.
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