The new tax regime, GST has been successfully rolled out on the July 1, 2017. The tax is aimed at bringing transparency and widens the base of taxation. With the implementation of GST, various individuals and businesses will be brought under the net of taxation and the chances of tax evasion will considerably reduce. The Government recently extended the deadline for businesses that choose to opt for the composition scheme under the GST regime. The deadline was extended till 16th August, 2017. The Government is mindful of the various concerns of the tax payers, especially the small tax payers, arising from the transition to GST regime.
With an aim to ease the burden of compliance of provisionally migrated small taxpayers who opt to pay tax under the composition scheme, the deadline has been extended for the filing of intimation for the composition levy. Small businesses with a turnover of up to Rs.75 lakh were earlier given time till 21 July to opt for this scheme. This has now been extended to 16th August. Under the composition scheme, the traders, manufacturers and restaurants can pay tax at 1%, 2% and 5% respectively. Those taxpayers, who are willing to cancel their registration, can also do the same by the end of September. To opt for the composition scheme, a taxpayer needs to log into his account on the GST portal and select ‘Application to opt for the Composition Scheme’. Further, they will have to fill up the form to opt for this scheme. The Form GST CMP-01 is applicable for the same.
Those taxpayers who were provisionally migrated by the virtue of being registered under the current laws, but no longer require to be registered under the GST, need to apply for the Cancellation of Registration by 30th September, 2017. There are more than 70 lakh excise, VAT and service taxpayers who have migrated to the GSTN portal for filing returns under the GST regime. Besides, there are more than 8 lakh new taxpayers who have also registered on the portal. The new registered taxpayers can opt for the composition scheme at the time of registration itself.
It has been noted that the rollout of GST has been successful and individuals are learning the significance of it. The Government is taking every step to make the process easier and quicker.