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GST Portal: Check Composition Scheme Status

Composition Scheme is an easy and simple scheme for the taxpayers registered under GST. This scheme helps small business owners and small taxpayers in avoiding lengthy and time consuming GST formalities and pay GST at a fixed rate on their annual turnover or income for specific financial years. According to the provisions of the Goods and Service Tax Act, 2017, taxpayers with annual turnover less than Rs. 1.5 Crore are eligible to register under the GST composition scheme.
Gst Portal Check Composition Scheme Status

Further, It is easy to find out whether a taxpayer has opted for the GST composition scheme or not. This is possible through the GST search tool. By entering their GSTIN, people can easily find out the details of the dealers or taxpayers who have opted for the GST composition scheme. Notably, the Central Board of Indirect Taxes and Customs has increased the threshold limit from Rs 1 crores to Rs.1.5 crores to opt for the GST composition scheme. The list of all dealers under the GST composition scheme is available at the GST portal as well. Also, the user can search for composition dealers on the GST portal without logging into it. 

Table of Contents

Check Composition Scheme Status: Without Login to GST Portal

The detailed stepwise procedure to check the composition scheme status on the GST portal without login into it, has been mentioned below.
Step: 1 fcfhcghc

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

Here, in this section a taxpayer can search by using GSTIN or by State. A taxpayer can choose any of these to check the status.

Search by GSTIN

Next, enter the GSTIN of the business and then enter the CAPTCHA. After entering the
CAPTCHA click on “Search”.

Search By State

A taxpayer can also enter the name of the State, Legal business name and financial year for which he or she wants to check the status and then enter the CAPTCHA. Then, click on the option “Search” to see the status. A web page will be shown displaying the details. A screenshot depicting the same is annexed below.

Check Composition Scheme Status: By Login into GST Portal

The steps to check composition scheme status by logging into the GST portal.
Step 1 fcfhcghc
First, login into the GST portal by providing the details of your username and password.
Step 2
After logging into your account go to the section “Search Taxpayer” and select “Search Composition Taxpayer”.
Step 3
Next, enter the GSTIN of the business and then enter the CAPTCHA. After entering the CAPTCHA click on “Search”.
Step 4
A taxpayer can also enter the name of the State, Legal business name and financial year for which he or she wants to check the status and then enter the CAPTCHA. Then, click on the option “Search” to see the status.
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 the businesses to make sure that the supplier are not composition dealer as they will not be able to claim input tax credit if they do business with a composition dealer.

Conclusion

With the above analysis, it can be seen that it is easy to search and check the status of a composition dealer through the GST portal by either of the ways without login or by login into the GST portal. The composition scheme is suitable mainly for small businesses whose turnover does not exceed Rs.1.5 crore in a financial year. However, a buyer cannot claim input tax credit by purchasing goods from a business registered under the Composition Scheme of GST.

FAQs

Under GST, a person opting for composition scheme is required to pay taxes on quarterly basis i.e. 18th day of every month succeeding each quarter during the time the supplies were actually made.
The rates of composition levy may vary based on the type of goods or services. For manufacturers, the rate of composition levy is 2% of the turnover (excluding the manufacturers of Ice Cream, Tobacco, Pan Masala etc). For restaurant owners the rate is 5% of turnover and for traders it is 1% of the turnover.
Yes, a taxpayer can switch between normal and composition schemes of paying taxes under GST. In the beginning of each financial year, the taxpayer will have an option to switch to another scheme. The taxpayer has the option to withdraw from the Composition Scheme on the GST portal by submitting an application. However, a taxpayer may face issues with regard to issue of invoices and filing GST returns due to such alterations.
The following are some of the persons not eligible for composition Scheme under GST

  1. A Non-Resident Taxable Person or a Casual Taxable Person
  2. Suppliers of Services other than Restaurant
  3. Suppliers of goods that are not taxable under the GST laws.
  4. Supplier engaged in supplying inter-state outward supplies of goods.
  5. Suppliers selling goods through e-commerce operator

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Setindiabiz is an organized team of experienced CA, CS, & Lawyers, duly supported by a pool of trained accountants & paralegal staff that provides quality & affordable compliance services to startups & small businesses in India. The views, statements and recommendations expressed in this article or post are only for the sole objective of providing information, and it does not constitute professional advice or recommendation of the company. Neither the author nor the company or its affiliates accepts any liability for any loss or damage arising from any information in this article or any actions taken in reliance thereon.
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