The revenue department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers. If implemented, it would check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer, an official said. An official said that the revenue department is also planning to launch a campaign to educate consumers that the dealers opting for composition scheme are not required to charge the goods and services tax (GST) from purchasers.
Under the GST composition scheme, traders and manufacturers are required to pay only 1 per cent GST on goods instead of 5, 12 or 18 per cent which is otherwise attracted.GST is not permitted to be charged by such dealers from the purchaser.
The threshold for composition scheme will increase to Rs 1.5 crore from the existing Rs 1 crore annual turnover from April 1. The GST Council, headed by Arun Jaitley and comprising state ministers, permitted service providers and those dealing in both goods and services with a turnover of Rs 50 lakh to opt for composition scheme. in its meeting on January 10
