As per Notification No. 45/2017 – Central Tax, the person taking registration under composition levy has to file FORM GST ITC-03 within 90 days from the date on commencement of composition levy.
As per Notification No. 46/2017- Central Tax dated 13th October, 2017, the limit for composition levy has increased from 75 Lacs to Rs 100 Lacs and in case of states with the special category it is been increased from Rs 50 Lacs to Rs 75 Lacs.
To address the concerns of taxpayers arising from Transition to the GST regime, the Government decides to extend the time limit for filing intimation for Composition Levy (filing of intimation FORM GST CMP-01) up to 16th August, 2017; The period of applying for Cancellation of Registration is being extended up to 30th September, 2017.
The Government is mindful of the concerns of tax payers, especially the small taxpayers, arising from transition to the GST regime from 1st of July, 2017.
With a view to ease the compliance burden of provisionally migrated small taxpayers opting to pay tax under the Composition scheme, it has been decided to extend the time limit for filing intimation for Composition levy (filing of intimation FORM GST CMP-01) up to 16th August, 2017.
Similarly, the taxpayers who were provisionally migrated by virtue of being registered under the existing laws, but who are no longer required to be registered under GST, the period of applying for Cancellation of Registration is being extended up to 30th September, 2017. Relevant notifications are being issued.
(Release ID :168858)
As per the CGST Act, the government on the recommendation of the GST Council can increase the threshold limit for composition levy from Rs 50 Lacs to maximum Rs 1 Cr through a notification.
In the CGST Bill as introduced in the Parliament, for registration under the Composition levy, prior permission of the tax officials is removed and also the tax rates have been reduced. The revised maximum rates for manufacturing is 1% previously it was 2.5%, in other cases (traders) it is 0.5% previously it was 1%. In the case of restaurants, the rate should not be more than 2.5%.
Maximum Tax Levy under the composition levy has increased from one percent to two and half percent in the revised Model GST Law released in November 2016.
A Taxpayer can obtain registration under Composition Levy if the turnover is less than Rs 50 Lacs and desires not maintain all records as per GST but pay a flat rate of tax at the end of the period. Under this levy, the taxpayer cannot take input tax credit or issue a tax invoice.