Intimation to pay composition tax

Taxpayers who are not eligible for opting-in composition scheme:-

• Suppliers of goods/services who are not covered under GST (Petroleum products)
• Inter-state outward supplier of goods/services
• Taxpayers who are supplying through e-commerce operators, who are required to collect TCS u/s 52
• Manufacturers of notified goods like:
  • Ice cream and other edible ice, whether or not containing cocoa
  • All goods i.e. Tobacco and manufactured tobacco substitutes
  • Pan Masala
  • Aerated water
• Casual Taxable Person
• Non-Resident Taxable Person
• A person registered as Input Service Distributor
• A person registered as TDS deductor/collector

A person opting for composition levy will have to pay tax on quarterly basis before 18th of the month succeeding the quarter

Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. 31st March?

The option to pay tax under composition scheme lapses from the day on which the aggregate turnover exceeds the specified limit of Rs. 1.5 crores/75 Lakhs/50 Lakhs. He is required to file intimation for withdrawal from scheme in Form GST CMP-04 within 7 days from the day on which the threshold limit is crossed.

However, such person shall be allowed to avail ITC in respect of stock of inputs and inputs contained in semi-finished or finished goods held in stock by him and on capital goods held by him on the date of withdrawal and furnish a statement within 30 days of withdrawal containing details of such stock held in Form GST ITC-01.

No, a taxable person opting to pay tax under the composition scheme cannot claim input tax credit, till he is under composition levy.

No, the composition dealer cannot collect tax on outward supplies from his customers, therefore, any person making purchase from a composition dealer cannot avail input tax credit.

No, the option is required to be exercised before commencement of the relevant financial year by filing Form GST CMP-02.