Know all about GST Composition Scheme

Big businesses in India are happy with the introduction of GST but small and medium enterprises (SMEs) and start-ups that don't have required resources and expertise to facilitate GST compliance procedures are having hard times.
Therefore, to lower the burden of compliance for small businesses, a GST composition scheme has been introduced by the GST Council where the individuals have to pay tax at a minimum rate based on their turnover.
Registering under the GST composition Scheme is optional and voluntary. Businesses having a turnover of less than Rs 50 lakh can opt for this scheme but on any given day, if turnover crosses the above-mentioned limit, then he becomes ineligible and has to take registration under the regular scheme.
Here are some of the terms and conditions to be able to register under composition scheme:
* Only suppliers of goods can opt for this scheme. The scheme is not applicable for service providers; however, restaurant service providers can apply.
* Businesses having the only intra-state supply of goods are eligible under this scheme.
* e-Commerce operators are barred from registering under composition scheme.
* The scheme is levied for all business verticals with the same PAN. You can't opt for composition scheme for one, and pay taxes for other.
* Dealers are not allowed to collect composition tax from the recipient of supplies, and neither are they allowed to take Input Tax Credit.
* If an individual found to be misusing composition scheme, the tax liability on him/her shall be TAX + Interest and penalty which shall be equal to the amount of tax.
* Dealers who collect Tax at source under Section 56 are also barred from registering in composition scheme.