Who Needs GST Registration in Maharashtra?

GST registration is mandatory in Maharashtra for:

Turnover-Based Registration

• For Goods: Turnover exceeds Rs. 40 lakh (Rs. 10 lakh for special category states).

• For Services: Turnover exceeds Rs. 20 lakh (Rs. 10 lakh for special category states).

Regular Taxpayer under GST – Meaning & Benefits

A Regular Taxpayer under the Goods and Services Tax (GST) system in India is any business or individual registered under GST who files returns regularly and complies with tax regulations. This category allows businesses to collect GST, claim Input Tax Credit (ITC), and meet tax obligations as per government rules.

Regular Taxpayer under GST – Meaning & Benefits

A Regular Taxpayer is:

• A business with an annual turnover above Rs. 40 lakh (for goods), Rs. 20 lakh (for services), or Rs. 10 lakh (for special category states).

• Any business making inter-state sales or supplying through e-commerce platforms.

• A taxpayer who collects GST from customers and pays it to the government.

• Eligible to claim ITC on GST paid for purchases.

Benefits of Regular GST Registration

• Can Claim Input Tax Credit (ITC): Reduces tax liability by claiming credit on GST paid for business expenses.

• Allows Inter-State Sales: Required for businesses operating across different states.

• Eligible for E-Invoicing & E-Way Bills: Mandatory for certain businesses to ensure compliance.

• Legal Business Recognition: Builds credibility and trust among customers and vendors.

• Higher Growth & Expansion: Businesses with GST registration can work with larger clients and government tenders.

Composition Taxpayer under GST

A Composition Taxpayer under GST is a small business that chooses a simple and easy tax system called the Composition Scheme. Instead of paying GST on every sale and keeping detailed records, they pay a small fixed percentage of their total sales as GST.

Applicability & Mandatory Requirement

A Composition Taxpayer under GST is a small business that chooses a simple and easy tax system called the Composition Scheme. Instead of paying GST on every sale and keeping detailed records, they pay a small fixed percentage of their total sales as GST.

• Optional Scheme: Small businesses can choose this scheme if their annual turnover is up to Rs. 50 lakh (limit may increase to ₹1 crore as per government rules).

• Lower Tax Rates: Businesses pay GST as a fixed percentage of turnover, without claiming Input Tax Credit (ITC).

  1. Manufacturers: 1% GST

  2. Traders & Others: 0.5% GST

  3. Restaurants (Serving Food): 5% GST (2.5% CGST + 2.5% SGST)

• No Tax Collection from Customers: Businesses under this scheme cannot charge GST separately on bills.

• Who Cannot Opt for Composition Scheme?

  1. Businesses selling outside Maharashtra (Interstate sales).

  2. E-commerce sellers (Amazon, Flipkart, etc.).

• No ITC for Buyers: Customers who buy from a composition dealer cannot claim ITC.

• Simpler Compliance: Quarterly GST Returns instead of monthly.

Benefits of the Composition Scheme (Small Taxapayer)

Lower Tax Rate: Businesses pay GST at a fixed percentage of turnover:

• Manufacturers & Traders: 1% of turnover (0.5% CGST + 0.5% SGST)

• Restaurants (Serving Non-Alcoholic Beverages): 5% (2.5% CGST + 2.5% SGST)

• Service Providers (Under Rs. 50 Lakh Turnover): 6% (3% CGST + 3% SGST)

Simple GST Returns: Only one quarterly return (GSTR-4) and annual return (GSTR-9A) need to be filed.No Monthly GST Payments: Taxes are paid quarterly, reducing compliance burden.Less Compliance & Paperwork: No need for detailed invoicing or input tax credit calculations.

Who Should Choose the Composition Scheme?

• Small traders, manufacturers, and restaurant owners who sell within the same state.

• Businesses with low expenses on GST inputs (as they cannot claim ITC).

• Those looking for simple compliance and lower tax rates.

Late Fees & Penalties for Delayed GST Returns

• GSTR-1 & GSTR-3B :

  1. Late Fee (per day) - Rs. 50 (Rs. 25 CGST + Rs. 25 SGST)

  2. Max Late Fee - Rs.10,000

• Nil GSTR-1 & GSTR-3B :

  1. Late Fee (per day) - Rs. 20 (Rs. 10 CGST + Rs. 10 SGST)

  2. Max Late Fee - Rs.500

• GSTR-9 :

  1. Late Fee (per day) - Rs. 200 (Rs. 10 CGST + Rs. 10 SGST)

  2. Max Late Fee - 0.25% of turnover

• Interest on late tax payment :

  1. 18% per annum

  2. No cap

Which One to Choose?

Why Choose Us for GST Services?

At Clearline Professional Chartered Accountant, we offer expert GST services, including:

• GST Registration & Compliance Assistance

• Monthly & Annual GST Return Filing

• Input Tax Credit Optimization

• GST Audit & Consultation