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Conversion of Registration from Normal to Composition under GST
Indirect Taxation
For a retail trader registered under Normal wants to convert to Composition. Only TO is the deciding factor or any other calculations ? For retail trader eg Departmental stores,Medical Shops ,there are many products which has different margin rates.. Kindly advise me
Answers (4)
Sorry i didn't get your question properly.. TO is not the only deciding factor, there are some restrictions stated in section 10(2) of cgst act.. Can you be more specific about your question.. Which calculation are you asking?? Is it about aggregate turnover??
Thread Starter
Chitra SurendiranHow to decide which scheme is beneficial and Tax saving?
My reply is based on my personal view.. You gave the examples of departmental store & medical shops.. According to me, normal scheme would be beneficial for them because if they opt for composition scheme they cannot avail ITC & also they would have to pay output tax out of their pocket.. This will be a little set back I guess.. Composition scheme will be better for those with very small business & for those who don't want to comply with a lot of formalities.. So it'll be a personal choice I guess.. If you are an retail trader of specific type of products, maybe composition scheme could be beneficial.. Example: hardware & plywood stores.. Hope this helps..
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