Composition Scheme
Small taxpayers with a total turnover of up to 50 lakhs can opt for the composition scheme. Under this scheme, they can pay tax at a rate not lower than 1% of their total turnover. However, taxpayers availing of the composition scheme are not allowed to claim input tax credit.
Taxpayers making interstate supplies or paying tax on a reverse charge basis are not eligible for the composition scheme. Additionally, the composition scheme can only be chosen by dealers and manufacturers, not by service providers.
Employment Work
An employment specialist is an individual who processes or works on the raw materials or semi-finished goods supplied to them. Their role is to complete a part or whole of the process resulting in the manufacture or finishing of an article, or any operation that is essential for the aforementioned process. In essence, they are responsible for carrying out tasks necessary for the production or completion of goods.
In GST work specialist is required to take enrollment if total turnover surpasses edge restrain.
A newly registered primary can supply taxable products to a job worker without payment of tax. Additionally, they can further send goods from one job worker to another job worker without tax payment. This provision allows for seamless movement of goods within the production process, facilitating manufacturing activities without immediate tax implications at each stage of processing.
If the goods of the principal are supplied directly from the job worker, it is included in the principal’s turnover, provided the job worker must be registered, and the principal needs to declare such place as an additional place of business or goods must be notified.
Treatment Of Credit On Inputs / Capital Products
In the case of inputs and capital goods supplied to job workers, the principal could claim the credit on inputs only when the supplied goods to job worker are returned to the principal within 180 days from the date of being delivered. If the goods are sent to a job worker,
straightforwardly the days will be tallied from the date of receipt of contributions by work laborer. assist a sum equal to the info tax credit benefited on such information sources must be paid alongside enthusiasm, on the off chance that the data sources are not gotten back inside the predetermined time. the credit can be recovered when the sources of info are really gotten back.
