What is a composite dealer in GST?
The GST Act requires a number of matches regarding tax payments, tax return filing and invoicing. However, smaller dealers will have a limited turnover and will not have enough revisions to meet the complex provisions. Thus, a structural scheme was introduced to reduce the burden of the taxpayer. The dealer is known as the Dealer Composite Dealer for 10 Composition Schemes of the CGST Act.
This scheme is available for those who do not exceed the total turnover of Rs. 75,00,000 in the financial year. However, these goods are only available to the supplier of goods and not the service supplier (except the restaurant). Even those who distribute things outside the state are not available. This scheme is optional.
Advantages of the Composition Scheme:
- The dealer should pay a fixed percentage of turnover taxes and do not worry about complicated tax statistics.
- They should file quarterly returns, not a monthly income, just like a normal quarterly.
- Dealers can not go to the interstate distribution of the transaction.
- Dealer tax credits are not eligible.
- The dealer can not charge GST on their invoice so he can not recover tax from the buyer.