Compounding scheme
This query is : Open
03 August 2017
In case any small retailer want to opt compounding scheme in gst,.. Then.... does his turnover includes nil rated gst items also for calculation of 1% gst.
03 August 2017
Yes, even on supplies which are exempted the rate of 1% shall be applicable.
03 August 2017
No. Inference - section 2(6) of GST Act,2017.
03 August 2017
Yes. GST applicable for your all supplies like Taxable Sales (+) Excempted Sales.
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03 August 2017
i stand corrected. NIL rated turnover to be included to check the threshold limit for compounding.
Inference -section 2(6) reads along with section 2(47) of GST Act,2017.
Inference -section 2(6) reads along with section 2(47) of GST Act,2017.
03 August 2017
Thanks all!
Dear B.Chackrapani Warriors sir,
e. g. If he sold total goods worth Rs. 60 lacks, (35 lakhs having gst @ 12% and 25 lakhs having 0%), then total 60 lacks would be taken for calculating the threshold of 75 lakh but he have to pay 1% only on 35 lakhs. Is it your view?
Dear B.Chackrapani Warriors sir,
e. g. If he sold total goods worth Rs. 60 lacks, (35 lakhs having gst @ 12% and 25 lakhs having 0%), then total 60 lacks would be taken for calculating the threshold of 75 lakh but he have to pay 1% only on 35 lakhs. Is it your view?
03 August 2017
Q 7. How will the aggregate turnover be computed for the purpose of composition?
CBEC’s FAQs on GST Composition Levy (As on 3 July 2017)
Q 7. How will the aggregate turnover be computed for the purpose of composition?
Ans. Aggregate turnover will be computed on the basis of turnover on an all India basis and will include value of all taxable supplies, exempt supplies and exports made by all persons with same PAN, but would exclude inward supplies under reverse charge as well as central, State/Union Territory and Integrated taxes and cess.
CBEC’s FAQs on GST Composition Levy (As on 3 July 2017)
Q 7. How will the aggregate turnover be computed for the purpose of composition?
Ans. Aggregate turnover will be computed on the basis of turnover on an all India basis and will include value of all taxable supplies, exempt supplies and exports made by all persons with same PAN, but would exclude inward supplies under reverse charge as well as central, State/Union Territory and Integrated taxes and cess.
03 August 2017
1% on 60 lakhs
03 August 2017
Thank you Altamush sir
03 August 2017
As per sec10(2)(b) of the CGST Act, a registered person opting for composition should not engaged in the supply of goods which are not leviable to tax. So , the dealer cannot avail the option. If the goods are nil rated or exempted, why should the dealer pay tax. Hope it is clear now.
03 August 2017
Even nil is a rate. There is a difference between non leviable (non taxable) and exempt. Section 10(2)(b) deals with non leviable supplies.
03 August 2017
Please read sec 2(47)
03 August 2017
exempt supply means- nil rate or exempted and includes non taxable supply.
03 August 2017
Exempt supply includes non taxable supplies but non taxable do not include exempt
03 August 2017
In composition only non taxable will be applied
03 August 2017
yah.....that means not leviable under this Act.
03 August 2017
Yes..........
03 August 2017
Means 1% on 60 lakhs... Is correct?
03 August 2017
Yes..........
03 August 2017
OK thanks a lot! 👨🎓
03 August 2017
Welcome......
We get a good discussion from Your query..... Finally standing that question is correct way....
03 August 2017
Yes, we had a good discussion and thanks for the same.
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03 August 2017
You are most welcome Sir....
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