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Composition scheme

25 March 2020

any food & beverages supply csn opt composition scheme if he supply food & beverages with alcoholic liquor for human consumption ?

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2 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 26 March 2020

NO as the "liquor for the Human consumption" is non - taxable supplies and Composition dealer can NOT eligiblr to make non taxable supplies (Sec 10(2)(b) )

Composition Dealer is not engaged in making any supply which are not leviable to tax under this Act

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Shivam RC (Student) (23683 Points)
Replied 09 April 2020

Alcoholic liquor for human consumption is outside the purview of GST. It is treated as a Non-Taxable Supply.

And as per the Provision of Section 10(2) of the CGST Act 2017 read with Rule 5 of the CGST Rules 2017, persons dealing in "Non-Taxable Supply" is not eligible to opt for Composition Scheme.