GST Council Meet Updates: Returns Under Composition Scheme Only Once a Year (Download PDF)


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Businesses with annual turnover up to Rs. 1.0 crore * can opt for composition scheme and exemption limit for MSMEs has been raised to Rs. 40 lakh of annual turnover. Turnover of all businesses with same PAN has to be added up to calculate turnover for the purpose of composition schem

Image of Composition Scheme

Image of Composition Scheme

Image of Composition Scheme

  • Only Manufacturers of goods, Dealers, and Restaurants (not serving alcohol) can opt for composition scheme.

  • The threshold limit for opting into composition scheme is recommended for an increase to Rs. 1.5 crores but yet to be notified.

Key Features of GST Composition Scheme

  • Eligibility: – Everyone is not eligible to register under the GST composition scheme. Taxpayers or people whose annual turnover less than or below Rs. 1 crore (1.5 crore limit yet not notified) in a financial year. Turnover for special category States, except Jammu & Kashmir and Uttarakhand, the limit is now increased to Rs. 75 Lacs. While the turnover threshold for Jammu & Kashmir and Uttarakhand will be Rs. 1 crore must register under the GST composition scheme. The small traders should fill up GST CMP-01 form to accept the scheme.

  • Special Eligibility: The GST council has included normal taxpayers within the composition scheme in case 10 % of annual turnover is provided as a service.

  • Quarterly Filing Returns: Instead of submitting returns 3 – 4 times in a month, taxable person or registered taxpayers will be required to submit or filing tax returns only one time in every quarter under the GST composition scheme.

GST Council Meet Key Changes

  • A committee has been set up to consider real estate GST rates, a consensus is yet to be achieved.

  • The exemption limit for MSMEs has been raised to Rs. 40 lakh of annual turnover. Currently, businesses below annual turnover of Rs. 20 lakh are exempted from paying GST.

  • The GST council also doubles the annual turnover threshold for GST registration.

  • The council has allowed the state of Kerala to impose a cess of up to 1 percent on intrastate sales for two years.

  • The GST composition limit for services is now set at Rs. 50 lakh.

  • The composition scheme limit has been hiked from Rs. 1.50 crore.

  • After the devastating floods that took place in 2018, Kerala has been permitted to levy a 1 percent cess for two years.

- Published/Last Modified on: April 26, 2019

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