GST Registration in Composition Scheme for Proprietor /  Partnership

Under the GST regime, small taxpayers with a turnover of up to Rs. 1.5 crores (Rs. 75 lakhs for special category states) can opt for the Composition Scheme. The Composition Scheme provides a simplified compliance mechanism for small taxpayers by allowing them to pay a fixed percentage of turnover as tax and file quarterly returns.

The procedure for GST Registration in Composition Scheme for Proprietor or Partnership is as follows:

Eligibility: The taxpayer must ensure that they are eligible for the Composition Scheme based on their turnover.

Register for GST: The taxpayer must first register for GST on the GST portal by filing an application in Form GST REG-01. The registration process is the same as for regular taxpayers.

Select Composition Scheme: While filling the GST registration application, the taxpayer must select "Yes" for "Do you want to opt for Composition Scheme?" in the "Registration - Part B" section of the application.

Provide other details: The taxpayer must provide all other required details in the application, such as the nature of business, the place of business, the details of the proprietor or partners, and the bank account details.

Submit application and pay fee: Once all the details are filled in, the taxpayer must submit the application and pay the registration fee of Rs. 200.

Verification: The authorities will verify the application and may ask for additional documents or information to process the application.

Approval: If the authorities are satisfied with the application and all required documents, they will approve the application and issue a GST registration certificate in Form GST REG-06.

Once registered under the Composition Scheme, the taxpayer must pay tax at a fixed percentage of turnover and file quarterly returns. They cannot avail input tax credit and are also not allowed to make inter-state supplies or supply exempted goods or services. It is important for taxpayers to comply with all the requirements of the Composition Scheme to avoid any penalties or interest charges. Therefore, it is advisable to seek professional help if necessary to ensure compliance with GST regulations.