‘It has been designed for small taxpayers’
GST Deputy Commissioner V. Ramanadha Reddy has said Composition Levy Scheme (CLS) is a hassle-free one designed for small taxpayers whose aggregate turnover is up to ₹75 lakh in the financial year 2016-17.
It is a voluntary and optional scheme provided in Section 10 of the Central GST (CGST) Act, 2017, and Chapter 2 of the CGST Rules 2017.
Addressing the media here on Wednesday, Mr. Ramanadha Reddy said by opting for CLS small taxpayers could get benefits like simple tax rates i.e. 1% for traders (0.50% GST+0.50%SGST), 2% (1% CGST+1% State GST) for manufacturers and 5% (2.5% CGST+2.5% SGST) for restaurants on turnover. Filing of returns in Forms GSTR-04 and payments could be done once in a quarter.
Mr. Reddy went on to detail the method of calculating the aggregate turnover, registration and intimation under the scheme and other aspects of the CLS about which the traders have been raising many doubts. He said the GST help desks set up across the State could be approached for assistance.