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To clarify and correct misconceptions about the GST concept, the Government has proposed a series of hour long “Masterclasses” for six days.
Following are the important points from the third GST masterclass:
The Third GST Masterclass is divided into the following two main parts:-
PART A-Composition Scheme
Composition levy is an option for specified categories of small taxpayers to pay GST at a very low rate on the basis of turnover.
The composition scheme is for
Manufacturers (other than few notified goods)
Traders of goods
Restaurants
having aggregate turnover of Rs 75 lakh in the previous financial year subject to certain conditions and restrictions. The Composition Scheme, in fact, if availed shall include all registered persons having same PAN. Composition scheme availability to a person shall lapse with effect from the date of his reaching the threshold turnover of seventy five lakh rupees.
The following are persons not eligible under the Composition Scheme:-
Supplier of services except restaurants
Any person who makes
(i) a supply of non-GST goods; or (ii) an inter-state supply; or (iii) a supply that attract TCS
is engaged in manufacture of goods, namely, ice cream, pan masala or tobacco and manufactured tobacco substitutes
Is a casual or a non-resident taxable person
Part B- Accounts and records
A Registered person is required to maintain records and accounts of the following:-
Production or manufacture of goods Supplies (inward/outward supply, supplier and recipient details, invoice, credit/debit note, delivery challan)
Stock ( receipt, used, lost, balance and location where goods are stored including in transit etc)
Input tax credit and use of inputs/input service
Output tax payable
Advance payments received and adjusted
To know more, watch the videos published my the government. The government has also published a detailed transcript of the class- here.
(This is a paraphrase and collection of important points published by the Ministry of Finance)
