• Small taxpayers having aggregate turnover up to 50 lakhs can pay tax which shall not be less than 1% of aggregate turnover and they are not allowed to take input credit.
• Tax payers making inter-state supply or paying tax on reverse charge basis shall not be eligible for composition scheme. The composition scheme can only opted by traders and manufacturers, not by service providers.
Job worker is the person who processes or works upon the raw materials or semi-finished goods supplied to him, so as to complete a part or whole of the process resulting in the manufacture or finishing of an article or any operation which is essential for the aforesaid process.
In respect of the inputs in goods and capital goods, the principal could claim the credit on inputs only when the supplied goods to job worker are returned to principal in 180 days from the date of being sent out. In case of the goods are sent to job worker directly the days will be counted from the date of receipt of inputs by job worker. Further an amount equivalent to the input tax credit availed on such inputs has to be paid along with interest, in case the inputs are not received back within the specified time. The credit can be reclaimed when the inputs are actually received back