GSTN or Goods and Services Tax Network has provided an option on its web portal to the businesses if 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 from the supplier. While the TCS and TDS are deducted, this facility will be made open on any date after 20th July’17 as per the GST news.
Under the new tax structure of the Goods and Services Tax (GST), the businesses must register with GSTN. GSTN is known as the IT backbone of GST. After the registration, the businesses are given a provisional ID to do transactions and file ITR.
GSTN has got new registrations of more than 3.58 lakh since June 25th. 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 a whopping 68 lakh.
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Using the option of the composition scheme is quite easy and convenient. The GSTN states that the taxpayers can easily sign in to their account in the GSTN portal and look for an option of the composition scheme. Also, the GSTN portal has facilitated by asking the registered businesses to respond to their option of the composition scheme. The composition scheme will remain open all the time, and people can use it anytime conveniently.
The taxpayers who have an annual turnover of not exceeding more than Rs. 20 lakh (In 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 have a turnover between the range of Rs. 20 Lakhs to Rs. 75 lakh can go for the 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 restaurant’s 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 do not choose 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, as an added measure, GSTN is aided with a help desk where if the businesses are facing problems with registration, they can contact the help desk to solve their issue.
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