Tax rates in GST composition levy
Tax rates in GST composition levy
Rules for composition levy are released by Government of India. These rules provide for the various relevant provisions in composition levy.Here we have compiled the tax rates in GST composition levy.Composition levy is for small businesses. If your turnover is upto Rs. 50 lacs you are eligible for composition levy. It is important to compare the tax rates in composition levy. If your normal tax on value addition is more than composition levy rate. It is the ideal scheme for you. But if you are selling to traders or registered person it will harm you. In that case you wont be able to pass on the credit.
The category of registered persons, eligible for composition levy under section 10 and these rules,
specified in column (2) of the Table below shall pay tax under section 10 at the rate specified in
column (3) of the said Table:
|
Sl No. |
Category of registered persons |
Rate of tax |
|
(1) |
(2) |
(3) |
|
1 |
Manufacturers, other than manufacturers of such goods as may be notified by the Government |
one per cent. |
|
2 |
Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II. The services specified in schedule II are “supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration” |
two and a half per cent. |
|
3 |
Any other supplier eligible for composition levy under section 10 and these rules |
half per cent. |
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