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Composition Scheme

27 August 2020

composition Scheme mein traders ko kitne % rate se tax pay Karna hota hai aur manufacturer ko kitne % rate se tax pay Karna hota hai restraunt service walo ko kitne % rate se tax pay Karna hota hai kya composition scheme me registered restraunt wale apne bill pe Gst collect karke show kar sakte hai ya nahi ;

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7 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 August 2020

Composition rate is as follows :
1. Manufacturers = 1% of total turnover
2. Restaurant and catering = 5 % of Total turnover
3. Traders = 1 % of taxable turnover

Composition dealer can not issue bill with GST, and can not collect GST from customer/purchase of Goods or service.
He has required to pay GST as per rate prescribed as above from its own pocket.

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LAW STUDIO ASSOCIATES (252 Points)
Replied 27 August 2020

Jab gst bill pe nahi lgayega composition scheme wala to traders ka taxable turnover aur manufacturer ka total turnover dono same hi baat to Hui

to kya manufacturer aur traders dono ko 1% ki rate se tax dena hoga bataiye

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 August 2020

Total turnover Means all turnover including Exempt turnover.
Taxable turnover Means only taxable, excluding Exempt.

If Trader sale Exempt Goods + Taxable Goods, than tax @ 1% payable on taxable Goods only.
But if manufacturers sale Exempt Goods + taxable Goods than, 1% tax on total sale/turnover including Exempt Goods.

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LAW STUDIO ASSOCIATES (252 Points)
Replied 29 August 2020

Thanku

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 30 August 2020

Welcome..........

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LAW STUDIO ASSOCIATES (252 Points)
Replied 30 August 2020

Sir restraunt me ac laga hai to bhi Composition scheme le sakte hai

aur car ke garage ko composition scheme me le sakte hai

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 30 August 2020

Yes, For A/C , non -A/C , all types of restaurants, you can take Composition scheme @ 5% Subject to conditions that your Turnover is less than 1.5 Crores (75 lakh in special category states).

Car Garage, Service sector me ata he..usko Composition scheme @ 6% available he subject to conditions that your Turnover from Garage service is less than 50 lakhs.

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