Forum GST GST - Regular Scheme or Compo…

GST - Regular Scheme or Composition Scheme ?
Anon
watch_later 24/01/18

Hi .. Wish to start a suuperbazaar/ departmental store . Annual turnover will be less than 1 Crore . Which type of GST is required for me ? Regular sceheme or composition sceme ?

 

Thanks in advance.

1 Response | Latest response: 24/01/18 | Sort by Likes(thumb_up) Recent | GST Reply
Pulkit Sharma
watch_later 24/01/18
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First, you need to take GST registration since your turnover will be more than Rs. 20 Lakhs.

Second, after taking registration, you have 2 options:

  • Either pay tax under regular provisions or
  • Opt for composition scheme

The decision should depend on multiple factors such as:

  • Whether your buyers are end consumers or you will deal in B2B also. B2B parties will not accept composition sellers as they cannot take input credit and tax part will be expense for them (including input you could not claim).
  • Profitability between 2 options.

You can read article profitability of composition scheme.

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