BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Provisions for a taxpayer’s registration under the composition system are found in Section 10 of the GST Act. The composition scheme aims to ease low-revenue entities’ compliance requirements for taxpayers with an annual revenue of less than Rs 1.0 crore. A composition dealer may supply services up to 10% of sales or Rs.5 lakhs under the CGST (Amendment) Act, 2018.
Registering under the composition scheme can have several benefits for small businesses:
However, it is important to note that there are certain limitations to the composition scheme, such as restrictions on interstate sales and the inability to claim input tax credits. Therefore, businesses should carefully evaluate their eligibility and assess whether registering under the composition scheme is the right decision for them.
Registering under the composition scheme provides severa benefits for small businesses, including lower tax liability, reduced compliance burden, easier tax calculation process, and higher liquidity. However, businesses must carefully consider the limitations of the scheme, such as restrictions on interstate sales and the inability to claim input tax credits, before deciding whether to register. Overall, the composition scheme is an useful option fro small businesses looking to ease their tax compliance process and reduce tax liability.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.