23rd GST Council Meeting - Changes to Composition Scheme

In the 23rd

GST Council Meeting held on 10th November 2017, various measures to improve compliance and reduce the burden on taxpayers were announced. In various articles, we have covered the major announcements made in the GST Council Meeting. In this article, we look at changes to the composition scheme announced. Small businesses can enrol under the GST Composition Scheme to pay GST at a flat rate and file simplified quarterly GST returns. In the 23rd GST Council Meeting, various changes have been made to the GST Composition Scheme to make it more taxpayer friendly.

Want to know about other major changes announced at the 23rd GST Council Meeting?

Details of GST Return Due Date Changes announced in the 23rd GST Council Meeting Details of GST Rate Changes for Goods announced in the 23rd GST Council Meeting Details of GST Rate Changes for Services and Service Providers announced in the 23rd GST Council Meeting

Increase in Threshold Limit for Registration under Composition Scheme

The GST Council increased the annual aggregated turnover threshold for registering under the GST Composition Scheme to Rs.2 crores. Thereafter the eligibility for composition shall increase to Rs.1.5 Crore per annum.

Uniform GST Rate fo 1% for Composition Scheme Dealers

The GST Council harmonised the GST rate payable by GST Composition dealers at 1%. However, not change has been announced on the GST rate for

composition scheme for restaurants.

Supply of Services upto Rs.5 Lakhs

Taxpayers registered under the GST Composition Scheme can now supply services with a taxable value of upto Rs.5 lakhs per annum. This provision will immensely help small computer shop operators and dealers involved in providing services along with sales of a product.

Due Date for Filing GSTR - 4 Return Extended

GSTR 4 return must be filed by the taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that was originally due on the 18th of October, January, April and July. Now, GSTR 4 for the July to September 2017 quarter will be due only on the 24th of December 2017. The GST Council shall announce the due date for subsequent quarters at a future date. Learn about GST Registration or GST Return Filing

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Frequently Asked Questions

Common questions about GST Composition Scheme Updates.

The GST Composition Scheme allows small businesses to pay GST at a flat rate and file simplified quarterly GST returns (GSTR-4). It reduces the compliance burden for eligible taxpayers.

After the changes, businesses with an annual aggregate turnover up to Rs. 2 crores are eligible to register under the GST Composition Scheme initially. Subsequently, the threshold will be reduced to Rs. 1.5 crores per annum.

The GST Council has harmonized the GST rate payable by GST Composition dealers at 1% for supply of goods.

Yes, the changes allow businesses registered under the GST Composition Scheme to supply services with a taxable value of up to Rs. 5 lakhs per annum.

The due date for filing GSTR-4 for the July to September 2017 quarter has been extended to 24th December 2017 for businesses registered under the GST Composition Scheme.

GSTR-4 is a quarterly return that needs to be filed by businesses registered under the GST Composition Scheme.

The changes aim to make the GST Composition Scheme more taxpayer-friendly by increasing the eligibility threshold, allowing limited services, and providing a uniform GST rate for composition dealers.

The article does not mention any changes to the GST rate for restaurants registered under the GST Composition Scheme.

The GST Composition Scheme aims to reduce the compliance burden for small businesses by allowing them to pay GST at a flat rate and file simplified returns.

The article mentions that other major changes related to GST return due dates, GST rates for goods, and GST rates for services and service providers were also announced in the 23rd GST Council Meeting.