Naveen Kumar agrawal asked 5 years ago
GST on Composition Dealer
I am a composition dealer and I am supplying taxable as well as nil rated and exempted goods.
whether I have to pay GST @ 1% i.e. 0.5 % for CGST and 0.5% SGST on all supply of goods along with nil or exempted supply?
CMA Deepa N. Tanna answered 5 years ago
Treder is required to pay GST at the rate of 1% only on the taxable turnover under the composition scheme. Nil and Exempted supply will not be included.
CMA Deepa N. Tanna answered 5 years ago
CBEC vide Notification No. 01/2018 dated 01 Jan 2018 , notified that for the suppliers who have opted composition scheme, now required to pay tax on taxable turnover only instead of aggregate turnover.
ADITYA JAYKISHAN NIBURANI answered 5 years ago
The rates of tax applicable in case of a composition dealer are prescribed by Rule 7 of the CGST Rules.
As per the aforementioned rule the rates may be summarised as below :
- Manufacturers – 1 % of the turnover in the State/UT [refer Sec2(112)]
- Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II – 5% of the turnover in the State or Union territory [refer Sec2(112)]
- Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter – 1% of the turnover of taxable supplies of goods and services in the State or Union territory
Thus for the first two categories stated in point 1 & 2 above tax is payable on both exempt and taxable turnover. And in case of the third category as in point 3 the tax is payable only on the taxable turnover.
Note : Views are personal. Comments invited
ADITYA JAYKISHAN NIBURANI answered 5 years ago
The rates of tax applicable in case of a composition dealer are prescribed by Rule 7 of the CGST Rules.
As per the aforementioned rule the rates may be summarised as below :
- Manufacturers – 1 % of the turnover in the State/UT [refer Sec2(112)]
- Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II – 5% of the turnover in the State or Union territory [refer Sec2(112)]
- Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter – 1% of the turnover of taxable supplies of goods and services in the State or Union territory
Thus for the first two categories stated in point 1 & 2 above tax is payable on both exempt and taxable turnover. And in case of the third category as in point 3 the tax is payable only on the taxable turnover.
Note : Views are personal. Comments invited
