Composite Scheme under GST

Is liability to pay taxes under Reverse Charge Mechanism covered under the Composite Scheme?

Any tax payable under Reverse Charge Mechanism will not be covered under the scheme. These taxes will be liable to be paid as a normal taxpayer.

Can a Composition Dealer collect composition tax separately?

No, a Composition Dealer is not allowed to collect composition tax from the buyer.

What is the threshold limit to be eligible for Composition Scheme?

Any dealer whose aggregate turnover in a financial year does not exceed INR 50 Lakh can opt for composition scheme

Can a dealer involved in interstate supplies opt for Composition Scheme?

No, Composition Scheme is available only for intra-state supplies. If a dealer is involved in inter-state supplies, then he cannot opt for the scheme.