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:
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:
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.
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.
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”.
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.
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.
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.
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.
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.
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.
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. Following the steps outlined above, stakeholders can effortlessly verify the GST Composition Scheme status both with and without logging into the GST portal, catering to different preferences and accessibility needs. Each step of GST Composition scheme check can enable you to get your Composition GST status easily.
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.
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.
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.
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.
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.
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.
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.
Such a great blog and very helpful for checking the composition schema status. Thanks!
Checking the Composition Scheme status without logging in was really easy and helpful. Thanks!