composition scheme

If you turnover lets say 5000000 then you have to only composite tax Lets 1% . 1% is charged in profit and loss like your expense...

suppose my tax invoice value of product purchased from dealer is of 500(include GST).....and my profit is 10.....so total is 510....so do I need to pay 1% of 510....??

yes... 3 type of composition rate applicable presently...


its my personal opinion, if anybody have different view then views are welcome. thanks. Disclaimer: its not Professional Advice.

yes, tax on transaction value
suppose A product MRP is 100/- , u can raise bil of supply l for A product 100/- , & u have deposit tax on 100/- rs 10/- (100 X 1/100=10)

To save you from heavy cost of tax, heavy control and heavy compliance.. Composition scheme is inserted. Under this, a eligible person having turnover less than 150 lakh can opt this. He will just have to pay 1% , 2% or 5% of turnover has his GST

suppose being retailer of cement ..he is getting his tax invoice of ₹360 per bag (inclusive of GST paid by his distributor)...now if retailer adds his profit of ₹5....so total price for ultimate consumer is ₹365.....so this means retailer needs to pay 1% of ₹365....that is 3.65 as tax under composite scheme...so his net profit would be 5-3.65 ie....only 1.35......is this how it works??..

Yes... GST paid on input can't be claimed as ITC. GST paid is part of cost