Rs 2 Crores Composition Scheme to Help Small Plywood Dealers

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Rs 2 Crores’ Composition Scheme to Help Small Dealers The Plywood retailing has grown multifold during last 10 years where there has been 60 percent rise in number of new retail shops in the country. There has been rapid growth in numbers of plywood retail shops that have mushroomed in rural, small and sub-urban areas across the country. After GST, many of these shops were in confusion and doldrums about the impact of GST registration and hence were under pressure.

The change in Composition scheme threshold has brought a relief among many those dealers who are struggling to comply with GST provisions. During the 23th GST Council meeting held at Guwahati the threshold has been increased up to Rs 2 crore annual turnovers from the earlier 1 crore. The draft says the annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rs 1 crore under the law. Thereafter, eligibility for composition will be Rs. 1.5 crore per annum. The uniform rate of tax will be 1% under composition scheme for traders.

A dealer from Patna said, “There are many small plywood shopkeepers in rural area of Bihar, who will suppose to get benefitted in new composition scheme of 2 crores annual turnover. This scheme will also help small furniture makers in these areas as well”. Although, the increasing limit for composition scheme will be a problem for those traders to compete with as they will have to pay 18 percent GST. Many who will be limiting their activity to this amount and try to get advantage, and they will still be unorganised doing business of sales and purchases. There is only way to curve these ill practices if regulatory body tightly monitor goods movement.

The composition scheme registered dealers will also not get benefit of input tax credit. There is an opinion from dealers and small traders that exempted limit to get resisted dealers has given them an opportunity to divided their businesses in many parts and many of the registered dealers will try to surrender and adopt the exempted limit operation.

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