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Gst % on composition dealer

Jeetu Manglani (177 Points)

28 May 2020

if we sales tax free goods under composition schme , whats gst rate 1% or Nill

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ankush soni (student) (100 Points)
Replied 28 May 2020

Nil rated

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Jeetu Manglani (177 Points)
Replied 28 May 2020

Ok thanks

Amit Jain (4 Points)
Replied 28 May 2020

If normal dealer purchase from composition dealer
can a normal dealer re sale it with tax or without tax

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 28 May 2020

It's Exempted , no GST Applicable.

note : the composition dealer who are engaged in manufacturing need charge GST on Exempted turnover also. (Refer Notification 1/2028 CT )

Amit Jain (4 Points)
Replied 29 May 2020

Ok thanks

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Shivam RC (Student) (23683 Points)
Replied 29 May 2020

If you are a Trader, then you are not required to pay GST @ 1% on your Exempt Supply Turnover.

Notification No. 8/2017 - Central Tax, dated 27th June 2017 was amended vide Notification No. 1/2018 - Central Tax, dated 01.01.2018, which clearly specified that TRADERS who have opted to pay GST under Composition Scheme are required to pay tax only on their "TAXABLE SUPPLY OF GOODS."

But Manufactures and Service Providers ( covered under Para 6 (b) of SCHEDULE II of the CGST Act 2017 ) are required to pay tax on their Exempt Supply as well ( except few transaction ).

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