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Composition scheme for paper manufacturing

cro0196097 mohd hafiz (39 Points)

16 April 2023

Different type of rate under composition scheme mainly for manufacturing of hand made paper

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5 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 16 April 2023

As per section 10(1)(a) of the CGST Act, rate for Manufacturer is 1% under Composition scheme.

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sabyasachi mukherjee (27574 Points)
Replied 16 April 2023

They do not get input tax credit.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 April 2023

Yes its 1% As per Rule 7 of CGST Act.

But if you have opted composition scheme under Section 10(2A) then it is 6% (Threshold limit is 50lac)

sabyasachi mukherjee (27574 Points)
Replied 17 April 2023

Rule 7 specifies that .
section 10(2A) specifies other aspect.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 April 2023

it is requested kindly read the sections & rule then comment on my reply.

there are 2 type of compoistion taxpayer being prescribed in ACT

Section 10(1) of CGST ACT : whose turnover is not exceeding 1.5 crore can opt this composition scheme. with effect from 01/02/2019 a person who opts to pay tax under clause (a) or (b) or (c) of sec-10(1) may supply service of value not exceeding 10 of turnover in state or 5 lac whichever is higher

And from 01/04/2019 sub-section (2A) was inserted under section 10 of cgst act : under this compoisiton scheme the taxpayer who is supplying goods or services or both can opt for the same and the threshold limit for the same is 50lac.

so for both the scheme the rate of tax is prescribed in rule 7 of cgst act