CA Bijay Shrestha (Never Give up....No matter what....) (858 Points)
11 July 2017Dear friends,
As per Sec.10(2) of the CGST Act - The registered person shall be eligible to opt Composition Levy, if (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act.
I know Fully exempted dealer is NOT liable to register.
But my query is - Can a dealer of fully exempt goods or nil rated goods opt Composition Levy if he wants to register voluntarily?
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 11 July 2017
Sec 23(1) of CGST also exempts the supplier from registration if wholly exempt supplies are made.
But if registration is to be taken voluntarily, it can be taken.
Further what's the use of voluntary registration under COMPOSITE scheme, the dealer cannot pass credit nor can it take credit!!
CA Bijay Shrestha
(Never Give up....No matter what....)
(858 Points)
Replied 11 July 2017
| Originally posted by : saloni | ||
 |
Sec 23(1) of CGST also exempts the supplier from registration if wholly exempt supplies are made. But if registration is to be taken voluntarily, it can be taken. Further what's the use of voluntary registration under COMPOSITE scheme, the dealer cannot pass credit nor can it take credit!! |
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Thanks for reply.
But what is the meaning of "any supply of goods which are not leviable to tax under this Act" as mentioned in Section 10(2)?
To whom it applies?
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 11 July 2017
Goods not leviable to tax are different from exempt goods.
Not leviable means they are not covered in GST. The supply of goods are not goverened by GST.
Whereas exempt goods are governed by GST but in public interest they are made exempt. They are not out of the purview of GST.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 11 July 2017
Goods as mentioned in sec 9(2) are those goods on which GST is not levied as of now.
CA Bijay Shrestha
(Never Give up....No matter what....)
(858 Points)
Replied 11 July 2017
| Originally posted by : saloni | ||
|
Goods not leviable to tax are different from exempt goods. Not leviable means they are not covered in GST. The supply of goods are not goverened by GST. Whereas exempt goods are governed by GST but in public interest they are made exempt. They are not out of the purview of GST. |
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So you mean to say Only those goods which are not covered by GST Law such as crude petroleum, natural gas, petrol, diesel, aviation turbine fuel, liquor/alcohol for human consumption are not eligible to opt Composition Levy?
CA Bijay Shrestha
(Never Give up....No matter what....)
(858 Points)
Replied 12 July 2017
One more Query -
A Shopkeeper of Gifts Centre (Not registered earlier under the Old Laws) wants to NEWLY register for Composition Scheme. He has some stocks of gifts which have Invoices from Registered Dealer under Old Act (VAT) and stocks from unregisterd dealer also.
Now if he wants to register for Composition Scheme,
1. Is he required to mention details of these stocks in registration Application ?
2. Is he required to pay tax on these stocks from Un-registered Dealer on RCM basis?
Please kindly suggest.
Jayesh Doshi
(Self)
(177 Points)
Replied 13 July 2017
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