GST compliance and Challenges for Composite Dealers
Abhishek Kumar / 2020-01-31 01:38:58
A business that specializes in trading, manufacturing or owning a restaurant having a turnover less than 1.5 crore (75 lakh in case of North-Eastern States) is now eligible to get registered under the composition scheme. These kinds of businesses are required to file GST returns quarterly. The composite dealers are facing some challenges even after the new GST laws implemented for their ease. Let us learn about the challenges.
Imagine you have prepared data for the month of June to August and a new rule has been implemented to make your the work more easy and now you have to again categorize each of them separately. Isn't that a challenging job? You might end up paying more tax.
Are you calculating your tax liability correctly?
Before the new implementations, the composite dealers paid a flat tax on the overall sales turnover but now after the changes the tax is only payable on the turnover comprising of taxable turnover and not the overall turnover. So now the composite dealer will have to pay less tax.
Is your taxable turnover correct?
Determine your taxable turnover by the following points:
1) The items in your inventory must be categorized as taxable, nil or zero-rated.
2) You are only supposed to apply the flat tax rate on the taxable goods.
Check if your bills are according to the GST format
If you are a composite dealer, you have to issue a “bill of supply”
instead of “tax invoice” to your customers. It is important to mention “Bill of supply” as a Bill title.
You have to make sure that the bill generated is only for the sum of items purchased by the buyer no additional GST taxes should be imposed.
All the GST Registration Online Composition taxpayer’s have to make sure that every sales transaction should be recorded in their quarterly GST return CMP-08 self-assessed tax.