The introduction of the GST Composition Scheme has been a game-changer for small taxpayers. In our previous blogs, we discussed the eligibility and process for the Composition scheme under GST enrollment. Continuing on the same track of information, this blog provides a step-wise guide on how to check GST regular or composite on the one-stop online GST service portal. Besides, it also discusses a few practical tips to overcome the challenges you may encounter in the process. For more updates, consider sending your queries directly to us, or posting them in the comments section below. Go through the further blog to understand various aspects of the composition scheme under GST.
The GST Composition Scheme is a new and simplistic way for small taxpayers to register under the GST regime. It helps them avoid the lengthy and time-consuming process of registering under the regular GST scheme, which not only has enormous compliance needs but also increases the taxpayer’s burden due to higher tax rates. On the contrary, the Composition Scheme has an extremely low cost of compliance, including GST payment, as the tax rates here are minimally low. So, if you’re an eligible taxpayer who is aware of the GST enrollment process, we recommend you try out the GST Composition Scheme promptly. Unaware of your current status? Use the GST composition scheme check status process explained in this blog!
GST Composition Scheme & Its Eligibility Criteria
The Goods and Services Tax (GST) Composition Scheme offers a simplified tax compliance solution for small businesses in India. To opt for this scheme, businesses must meet specific eligibility criteria set forth by the GST authorities. Primarily, a taxpayer can enroll in the Composition Scheme if they are a regular taxpayer under GST with an aggregate annual turnover below Rs. 1.5 crore, or Rs. 75 lakhs for businesses in hilly and north-eastern states.
However, certain types of businesses, such as those dealing with exempted goods, inter-state supply, or operating as tax collectors, are not permitted to participate. Understanding these eligibility requirements is crucial for businesses considering the Composition Scheme as it offers both benefits and limitations tailored to certain types of enterprises. Read further for details:
- Aggregate Annual Turnover: The taxpayer must be a regular taxpayer under GST and have an aggregate annual turnover less than Rs. 1.5 crore in the previous financial year. However, for businesses in hilly and northeastern states, the threshold limit is Rs. 75 lakhs. It’s important to note that once a business registered under the Composition Scheme crosses the threshold limit, it will automatically be opted out of the scheme.
- Entities Not Permitted: The above criteria has exceptions. Certain types of businesses are prohibited from opting into the scheme, irrespective of their turnover limits. A complete list is given below:
- Suppliers of goods exempted under GST laws
- Casual Taxable Person
- Manufacturers of ice cream, tobacco, or pan masala
- Suppliers of goods through an e-commerce operator
- Inter-state supply of Goods
- Non-Resident Foreign Taxpayer
- Tax Collector or TDS Collector
- Input Service Distributors
How to Check GST Composition Scheme Status?
Understanding the status of a business’s GST Composition Scheme is crucial for compliance and taxation purposes. There are two primary methods for checking this status:
- Without logging into the GST portal
- By logging into the GST portal
The non-login method offers a quick and accessible way to verify the Composition Scheme status for anyone, including customers and vendors, without the need for credentials. On the other hand, the login method provides more detailed information and is ideal for business owners or authorized personnel who have access to the GST portal.
By logging in, users can access comprehensive data related to their GST registration, including the Composition Scheme status, making it a preferred choice for businesses seeking detailed insights and compliance updates. Now, let’s delve into each method to understand the process thoroughly.
How to Check Composition GST Status Without Logging Into GST Portal?
When checking the Composition GST status without logging into the GST portal, stakeholders can conveniently verify the compliance status of a business without the need for credentials. This method offers a straightforward process accessible to various parties, including customers and vendors, providing quick insights into a business’s Composition Scheme status. Here is the stepwise process of GST Composition Scheme Check Status without logging in with your credentials.
Step 1: Go to “Search Taxpayer” Option on GST Portal
Open the homepage of the GST Portal and Click on the “Navigation Search Composition Taxpayer”. Go to the “Search” option and select the option “Search Composition Taxpayer”.
Step 2: Enter GSTIN / State to Get Final Results
Stakeholders are prompted to proceed with the search by either entering the GST Identification Number (GSTIN) or selecting the option to search by state. This step allows users to tailor their search based on their preference and the information available, ensuring easy GST composition scheme check status online. Whether opting for GSTIN or state-based search, completing the CAPTCHA verification process is essential to proceed and retrieve the relevant information accurately.
- Search by GSTIN: Enter the GST Identification Number (GSTIN) of the business for which you want to check the Composition Scheme status. After entering the GSTIN, input the CAPTCHA code displayed on the screen. Once completed, click on the “Search” button to retrieve the information.
- Search By State: Alternatively, you can search by state. Enter the name of the state, along with the legal business name and the relevant financial year for which you wish to verify the status. Enter the CAPTCHA code and click on the “Search” button to proceed. A webpage will display the details accordingly.
How to Check Status of Composition Scheme under GST by Logging into GST Portal?
When it comes to the GST composition scheme check status process by logging into the GST portal, users can access comprehensive information tailored to their registered accounts. The steps to be followed are mentioned below. By following these steps and availing the functionalities of the GST portal, users can efficiently access and review the Composition Scheme status.
Step 1: Login to the GST Portal
To begin, users must log in to the GST portal by providing their username and password. This step ensures secure access to the portal’s functionalities and personalized information.
Step 2: Navigate to "Search Taxpayer"
Upon logging into the account, locate the section labeled “Search Taxpayer” and select the option “Search Composition Taxpayer.” This specific selection directs users to the relevant tools for checking the Composition Scheme status.
Step 3: Enter GSTIN or State Details
Enter the GST Identification Number (GSTIN) of the business for which you intend to verify the Composition Scheme status. After inputting the GSTIN, complete the CAPTCHA verification and click on the “Search” button to proceed. Alternatively, users can search by state by providing the name of the state, along with the legal business name and the relevant financial year. Once entered, complete the CAPTCHA verification and click on the “Search” button to initiate the search process.
Step 4: Review Status
Upon completing the search process, the portal will display the Composition Scheme status corresponding to the provided GSTIN or state details. Users can review the information presented to ensure compliance with GST regulations and make informed decisions regarding their business operations.
Though the aforementioned steps of checking composition scheme status under the GST may seem a little lengthy and complicated, it helps you check your composition scheme status easily.
Points to Remember
The taxpayers whose turnover does not exceed Rs. 1.5 Crore during a financial year, excluding those from the special category states (threshold limit has been reduced to 75 Lakhs in the special category areas), have the option to get them registered as a composition dealer.
Composition dealers cannot levy taxes on the outward supplies, thus the buyer purchasing goods from a composition dealer will not be eligible to claim input tax credit on inward supplies.
Composition scheme is one of most convenient facilities for a person to verify whether a business has opted for composition scheme. Especially, this helps businesses to make sure that the supplier is not a composition dealer as they will not be able to claim input tax credit if they do business with a composition dealer.
Understanding how to check GST regular or composite status is vital for businesses to ensure compliance with tax regulations. By following the outlined steps, stakeholders can effortlessly verify the Composition Scheme status both with and without logging into the GST portal, catering to different preferences and accessibility needs.
Whether opting for the non-login method for quick insights or logging into the portal for more detailed information, businesses can streamline their compliance processes and make informed decisions regarding their tax obligations. It's essential for businesses to regularly monitor their GST status to maintain adherence to regulatory requirements and avoid any potential penalties or fines. Following each step of checking the status of the Composition scheme under GST can enable you to get your Composition GST status easily.
FAQs
Q1: When is a person opting for a composition scheme under GST required to pay tax?
Under GST, a person opting for the composition scheme is required to pay taxes on a quarterly basis, typically by the 18th day of every month succeeding each quarter during the time the supplies were actually made. This process ensures regular compliance with tax regulations. To understand how to check GST regular or composite status and ensure timely payments, taxpayers should adhere to the specified deadlines.
Q2: What is the specified rate of composition levy?
The rates of composition levy may vary based on the type of goods or services. For manufacturers, the rate of composition levy is typically set at 2% of the turnover (excluding the manufacturers of Ice Cream, Tobacco, Pan Masala, etc.). Restaurant owners are usually subjected to a rate of 5% of turnover, while traders typically face a rate of 1% of the turnover. Knowing how to check GST composition scheme rates allows taxpayers to accurately calculate their tax liabilities.
Q3: Can I choose the Composition Scheme for one year and change it later?
Yes, taxpayers can switch between normal and composition schemes of paying taxes under GST. At the beginning of each financial year, taxpayers have the option to switch to another scheme, providing flexibility in tax management. However, taxpayers should be mindful of potential issues with invoicing and filing GST returns due to such alterations. Understanding how to check GST composition scheme status and make changes accordingly is essential for seamless compliance.
Q4: Who are the persons not eligible for the composition scheme under GST?
Certain categories of taxpayers are not eligible for the composition scheme under GST. These include Non-Resident Taxable Persons, Casual Taxable Persons, Suppliers of Services other than Restaurants, Suppliers of goods that are not taxable under the GST laws, Suppliers engaged in supplying inter-state outward supplies of goods, and Suppliers selling goods through e-commerce operators.
Q5: How to check GST Regular or Composite status of your GST Number?
To ascertain the status of a GST number and determine whether it is registered under the Composition Scheme or as a regular taxpayer, individuals can utilize various online tools provided by the GST portal or other reliable sources. One method involves accessing the GST portal and utilizing the “Search Taxpayer” feature to input the GSTIN and retrieve the registration details, which will indicate the taxpayer’s scheme status.
Q6: What is the last date for opting composition scheme 2024-25?
Composition scheme under GST must be filed at the beginning of every financial year by the 31st March. The due date to file CMP-02 for FY 2024-25 is 31st March 2024.
Q7: What is the deadline to convert to a composition scheme?
If you are GST Registered and want to apply for the GST Composition Scheme for FY 2024-25, then the last date to apply for this conversion is March 31, 2024. Simply, login to the GST portal and go to ‘Application to Opt for Composition Levy’ under the Registration tab.
Checking the Composition Scheme status without logging in was really easy and helpful. Thanks!