Around 28.75% of GST assesses did not file for returns in 2018, while 16% required to register such returns monthly failed to comply with the updated rules.

Owing to complex nature and relatively lengthy paperwork, many businesses tend to miss out on such filings. To simplify the process, companies can opt for GST composition scheme in which only one form has to be submitted annually.

You can file returns for your business through composition scheme, provided your company satisfies the following criteria –

• GST composition scheme rules are that only firms dealing in the supply of goods can avail such facilities. No service providers can avail such benefits. 
• Companies dealing in supply of goods within the same state are eligible for such benefits.
• All businesses verticals should have the same PAN number to apply for composition scheme to file GST. 

• Reduced hassles – 

Usually, companies are required to register for three monthly GST returns (GST-1, GST-2, GST-3), and one annual return (GST-9), if yearly turnover is higher than Rs.1.5 crore. Composition scheme has provisions for businesses to file only two returns annually - GST-4 and GST-9.

Owing to complex nature and relatively lengthy paperwork, many businesses tend to miss out on such filings. To simplify the process, companies can opt for GST composition scheme in which only one form has to be submitted annually.

Thus, complications of paperwork are significantly reduced through such composition scheme.

• Lower tax liability – 

With fixed rates of GST imposed on a yearly basis, the total tax liability is significantly reduced. Such benefits allow companies to enjoy higher profits, which can be reinvested to fund expansion projects.

Also, the lower burden will enable companies to enjoy greater liquid fund availability, which, in turn, increases the overall cash flow and turnover.

The composition scheme under GST benefits small businesses by increasing their profitability, allowing them to undertake all development and expansion projects.

Companies can additionally avail business loans for higher financing requirements, extended by numerous financial institutions in the country.