Biz get time till Aug 16 to opt for GST composition scheme

The government on Saturday extended the deadline till August 16 for businesses to opt for composition scheme under the GST regime.

"With a view to ease the compliance burden of provisionally migrated small taxpayers opting to pay tax under the composition scheme, it has been decided to extend the time limit for filing intimation for composition levy up to August 16, 2017," the finance ministry said in a statement.

Small businesses with turnover of up to Rs 75 lakh were earlier given time till July 21 to opt for the scheme in the Goods and Services Tax regime.

The government is mindful of the concerns of tax payers, especially the small taxpayers, arising from transition to the GST regime from July 1, 2017, the ministry said.

To opt for composition scheme, the taxpayer needs to log into his account at the GST Portal www.Gst.Gov.In and select 'Application to opt for the Composition Scheme' under 'Services' menu.

They have to fill up the Form GST CMP-01 to opt for the scheme.

Under composition scheme, traders, manufacturers and restaurants can pay tax at 1 per cent, 2 per cent and 5 per cent, respectively.

The ministry further said taxpayers willing to cancel their GST registration can do so till September 30,2017.

"Taxpayers who were provisionally migrated by virtue of being registered under the existing laws, but who are no longer required to be registered under GST, the period of applying for Cancellation of Registration is being extended up to September 30, 2017," it said.

There are over 70 lakh excise, VAT and service taxpayers who have migrated to the GSTN portal for filing returns in the GST regime which kicked in from July 1.

Besides, there are over 8 lakh new taxpayers who have registered on the portal. These new registered taxpayers can opt for the composition scheme at the time of registration.