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What is a Composer GST seller?

What is a Composer GST seller?

The GST Act requires multiple compliances regarding tax payment, tax return filing, invoicing and etc. However, merchants who work at a slightly lower level may have limited transfers and do not have the necessary resources to comply with complex provisions. Thus, the composition scheme is introduced to reduce the burden of tax implementation for small producers. The businessman selected for the Composition Scheme u / s 10 of the CGST Act is known as the Composite dealer.

The method for people with an aggregate turnover in one financial year will not breach Rs.75,00,000. However, the method can only be a supplier of items and not a provider of services (except restaurant service). It does not even get people who give things outside the state. This approach is optional.

Benefits of Composition:

  • The entrepreneur must pay the specified turnover tax rate and do not have to worry about complicated tax calculations.
  • They need to file quarterly returns and not monthly returns as a normal taxpayer.


  • The businessman can not go for the supply of state treasury.
  • The seller does not have the right to Input Tax Credit.
  • The seller can not pay the GST on their invoice and thus can not recover the tax from the buyer.

1)  Who can choose a structural scheme?

  • Entrepreneurs with an annual turnover of up to Rs 1.5 crore can choose the composition scheme.
  • The sale of all businesses with the same PAN should be added to the turnover calculation for the purpose of the composition scheme.
  • Only Manufacturers, Dealers, and Restaurants (non-alcoholic) can choose the composition scheme.
  • The threshold limit for opting into a composition scheme is recommended for an increase to Rs. 1.5 crores but yet to be notified

2) What is the tax rate applicable to the distributor of the compositions?

Please use the chart below to understand the tax rate for the turnover to be used:

Composition schemes

A composite company is required to pay a tax at a specific rate in general. Besides, the seller must pay tax under the reverse charge of the requested purchase, purchase the form of the unregistered seller and importing services.

3 ) Is it obligatory to pay the following tax collection mechanism covered by compilation scheme?

  • Components of the component should pay the tax whenever the underlying collection mechanisms are under.
  • The price applied for the price is the price given by GTS. This means that the purpose of collecting collection should not be used in accordance with the structure system.
  • Also, no type of IPC is being backed down for a commercial deal.

4) I am selling the non-registered dealer. Am I tax?

  • The ordinary price tax should be paid by non-registered traders only for July and August 2017. Since September, there is no need to pay on this procurement.
  • The ITC is not available for repayment tax.

5) How does the tax amount count?

This means that Total GST Paid =

Taxes on supplies (no increase and return)

+ Tax on B2B transactions where Reverse Charge is used

+ B2B tax purchased from unregistered suppliers

+ Import Tax on Services

Reverse tax amount of transactions on the reverse charge, purchase from unregistered seller and services imports at normal prices, are the fees used for supplies. Prices under the Composition Scheme may only be used in the sales of a composite company.

6) What are the conditions for using credit terms for transit time when it is delayed during transit?

The following conditions are to be decided by the taxpayer to use a credit scheme to sign in to a normal scheme by entering the scheme at the time of time:

  • Usage of procurement and merchants will be used to finance.
  • In the first model, a CENVAT loan may be required, but cannot be under the telephone call.
  • The IPC has the right to use under the GTS regime.
  • Taxpayers pay money for items that are provided for these goods.
  • Invoices should not be more than 1 July 2017 (eg, not before July’s first date).

7) Return to computer distribution?

  • The taxpayer is obliged to submit only a report, which is an annual return of the GSTR-4 and Form of the GRE-9A form.
  • Also, automatic information provided does not exist for music for the fourth and nine months for music for the September and October-December December. This means that all the information of the sale should be entered into a construction dealer.

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