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All QuestionsCategory: GST ConsultancyGST on Composition Dealer
Profile photo of Naveen Kumar agrawalNaveen Kumar agrawal asked 1 week 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?

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4 Answers
Profile photo of Deepa N. TannaCMA Deepa N. Tanna answered 1 week 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.

Profile photo of Deepa N. TannaCMA Deepa N. Tanna answered 1 week 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.

Profile photo of ADITYA JAYKISHAN NIBURANIADITYA JAYKISHAN NIBURANI answered 3 days 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 :  

  1. Manufacturers – 1 % of the turnover in the State/UT [refer Sec2(112)]
  2. 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)]
  3. 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

Profile photo of ADITYA JAYKISHAN NIBURANIADITYA JAYKISHAN NIBURANI answered 3 days 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 :  

  1. Manufacturers – 1 % of the turnover in the State/UT [refer Sec2(112)]
  2. 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)]
  3. 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