What is the validity of composition Scheme?
Video Tutorial by CA Satbir Singh explaining Validity Period of GST Composition Scheme
Whether composition scheme has to applied prior to beginning of every Financial year ?
Thus once you have opted for GST composition scheme , then you are not required to apply prior to beginning of every financial year
The option exercised by a registered person to pay tax under composition scheme shall remain valid so long as he satisfies all the conditions mentioned in section 10 of CGST Act, 2017 read with Chapter II of the CGST Rules, 2017.
(3) The option availed of by a registered person under sub-section (1) shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified under sub-section (1).
Turnover limit for Composition Levy : Aggregate turnover in the preceding financial year shall be “seventy-five lakh rupee” in the case of an eligible registered person, registered under section 25 of the said Act, in any following States, namely: –
(i) Arunachal Pradesh,
(ix) Himachal Pradesh:
Turnover limit for Composition Levy is “one crore rupees” for all other states in India
[ See Turnover limit for Composition Levy for CGST Act Notification No. 8/2017-Central Tax, dated 27-6-2017. , Notification No 46/2017 Central Tax Dated 13th October, 2017 and Notification No 1/2018 Central Tax Dated 1 st January, 2018 ]