FAQ 11 : As a registered taxpayer which Annual Returns i have to file if i have migrated from Composition Scheme to Regular Scheme due to the increase in my turnover? Do i need to file Annual Return as Regular Tax Payer or Composition Tax Payer or both?
Annual Returns for the Regular Scheme and Composition Scheme are to be filed by the taxpayer for the relevant periods.
• Annual Return during the period as Regular Taxpayer Form GSTR – 9
• Annual Return during the period as Composition Taxpayer Form GSTR – 9A
As per Notification No 3 – Central Tax, Person taking registration under composition scheme has to file Form ITC-03 within 180 days from the date of taking registration under composition scheme. Replacing old provisions of 90 days in Sub-rule 3(a) of rule 3 of CGST Act.
Order No. 01/2017-GST
Subject: Extension of time limit for filing intimation for composition levy under subrule
(1) of rule 3 of the CGST Rules, 2017 In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017, the Board hereby extends the period for filing an intimation in FORM GST CMP-01 under sub-rule (1) of rule 3 of the Central Goods and Services Tax Rules, 2017 upto 16th August, 2017.
Source – http://www.cbec.gov.in/resources//htdocs-cbec/gst/order1-gst.pdf
As per Notification No. 8/2017-Central Tax dated 27th June 2017, the threshold limit for Composition Scheme has been increased to Rs 75 Lacs in all states and Rs 50 Lacs with states under special category status. Manufacturers of Ice cream and other edible ice, whether or not containing cocoa, Pan masala & All goods, i.e. Tobacco and manufactured tobacco substitutes are not eligible for registration under Composition Scheme.
As per Composition Rules, a taxpayer registered under composition scheme is required to file FORM GST CMP-04 if he ceases to follow any of the rules as per the act or rules within 7 days of such event and then issue a regular tax invoice.
As per the Composition Rules, every person registered under composition scheme should mention “composition taxable person” on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or
places of business.
As per the Composition Rules, a person is not eligible to take registration under the composition scheme if he is required to pay taxes under reverse charge on the closing stock or if he is having goods imported from any place other the state outside the state from where is he opting to take registration under composition scheme.
As per the Draft Input Tax Credit Rules, when regular taxable person changes to composition scheme, for the capital goods remaining in stock the input tax credit to be reversed, is based on the residual life of the asset as 5 years and input tax credit will be computed on pro-rata basis for the remaining life of the asset.
As per Draft Input Tax Credit Rules, the taxpayer who has registered for GST as regular taxpayer now opts for Composition Scheme, then the input tax credit has to paid in FORM GST ITC-03 as output tax liability for the inputs lying in stock, and inputs contained in semi-finished and finished goods lying in stock, the input tax credit shall be calculated proportionately on the basis of corresponding invoices on which credit had been availed by the registered taxable person on such input.
Under the Goods and Services Tax (Compensation to States) Act, 2017, Cess will be levied on all interstate and intra-state transactions on the supply of goods and service notified by the GST council from time to time. Cess is not applicable to be paid by persons who have opted for registration under composition scheme.