What is Composition Scheme?
Composition Scheme is that scheme, In which any resident
person has to pay tax at fixed rate based on his previous year's turnover. Due
to the tax rate fix in the composition scheme, there is no need to fill the returns
again and again that is monthly, but once in three months (quarterly) there is
a need to fill the returns.
A person registered under composite scheme can’t charge the
GST from customers.
Registered Person can’t issue tax invoice due to which he
does not get any kind of input tax credit.
And the registered dealer has to issue a "Bill of
Supply" in place of the tax invoice in the composition scheme.
And this scheme can be availed only by those individuals
whose turnover in last year is 1 crore or less.
