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- Composition scheme limit raised to Rs. 1 Cr and Rs. 75 Lakhs and also re...
1. The composition scheme shall be made available to taxpayers having annual aggregate turnover of up to Rs. 1 crore as compared to the current turnover threshold of Rs. 75 lacs. This threshold of turnover for special category States, except Jammu & Kashmir and Uttarakhand, shall be increased to Rs. 75 lacs from Rs. 50 lacs. The turnover threshold for Jammu & Kashmir and Uttarakhand shall be Rs. 1 crore. The facility of availing composition under the increased threshold shall be available to
both migrated and new taxpayers up to 31.03.2018. The option once exercised shall become operational from the ﬁrst day of the month immediately succeeding the month in which the option to
avail the composition scheme is exercised. New entrants to this scheme shall have to ﬁle the return in FORM GSTR-4 only for that portion of the quarter from when the scheme becomes operational and shall ﬁle returns as a normal taxpayer for the preceding tax period. The increase in the turnover threshold will make it possible for greater number of taxpayers to avail the beneﬁt of easier
compliance under the composition scheme and is expected to greatly beneﬁt the MSME sector.
2. Persons who are otherwise eligible for composition scheme but are providing any exempt service (such as extending deposits to banks for which interest is being received) were being
considered ineligible for the said scheme. It has been decided that such persons who are otherwise eligible for availing the composition scheme and are providing any exempt service, shall be eligible for the composition scheme.
3. A Group of Ministers (GoM) shall be constituted to examine measures to make the composition scheme more attractive.