Biz under composition scheme to soon start filing GST returns

Around 15 lakh businesses opted for composition scheme, which allows them to pay taxes at a concessional rate and makes compliance easy, till September under the Goods and Services Tax (GST) that rolled out from July 1.

"We are ready with GSTR-4 which will be used by composition scheme businesses for filing returns. The utility will be available on GSTN portal soon," GST Network CEO Prakash Kumar said.

As per the GST laws, for July-September quarter businesses, with turnover of up to Rs 75 lakh, opting for composition scheme can file quarterly returns and pay taxes.

The scheme is optional under which manufacturers other than those of ice cream, pan masala and tobacco products have to pay a 2 per cent tax on their annual turnover.

The tax rate is 5 per cent for restaurant services and 1 per cent for traders.

There are over 1 crore registered businesses under the GST, which has amalgamated over a dozen taxes to make India a single market for seamless flow of goods and services.

The GST Council had earlier this month raised the turnover threshold from Rs 75 lakh to Rs 1 crore for businesses to opt for the scheme.

Hence, those with turnover of up to Rs 1 crore can take advantage of composition scheme beginning October 1.

Also, a group of state finance ministers have been set up to make the scheme more attractive. The objective behind the composition scheme is to bring simplicity and reduce the compliance cost for small taxpayers.