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pan parlour

17 July 2017

if a person runs pan parlour and selling tobacco products. cigar etc. then whether he can option for composition scheme or not. please experts advice me.

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2 Replies

Karan Batra (Creator: TheProTalks) (2325 Points)
Replied 18 July 2017

This clearly depends on two factors

You should not be a manufacturer of that Tobacco susitute(Pan etc)
And even if you are just a seller/supplier no sales should be from Inter state supplies

Then yes In my opinion you can opt for Composition Scheme

Read the following which should substantiate my opinion which is an excerpt from GST ki Master Class by CBEC/CG

"Manufacturers of ice-cream, tobacco products and service providers, except restaurateurs, cannot avail of the Composition Scheme under the Goods and Services Tax (GST), Revenue Secretary Hasmukh Adhia said on Wednesday.

"Suppliers of services, except restaurants, and any person who makes inter-state supplies or is engaged in manufacturing of certain goods, namely ice-cream, pan masala or other tobacco products and tobacco substitutes, is not eligible for Composition Scheme," he said."

Adhia was speaking at the "GST-Ki-Master Class" held for traders, tax practitioners and all officers of the Central Board of Excise and Customs and state governments."