Know all about GST Composition Scheme Big businesses in India are happy with the introduction of GST but small and medium enterprises and start-ups that don't have required resources and expertise to facilitate GST compliance procedures are having hard times. Therefore, to lower the burden of compliance for small businesses, a GST composition scheme has been introduced by the GST Council where the individuals have to pay tax at a minimum rate based on their turnover. Businesses having a turnover of less than Rs 50 lakh can opt for this scheme but on any given day, if turnover crosses the above-mentioned limit, then he becomes ineligible and has to take registration under the regular scheme. * Businesses having the only intra-state supply of goods are eligible under this scheme. * e-Commerce operators are barred from registering under composition scheme. * Dealers who collect Tax at source under Section 56 are also barred from registering in composition scheme. The rate of composition in GST ais 1% of the turnover for traders and other suppliers acceptable for the composition scheme registration, 2% of the turnover for manufacturers apart from manufacturers of products not covered under the GST composition scheme and 5% of the turnover for restaurant services.
