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composition dealer can not sale or buy Tobacco products?

JITENDRA (KKMF) (29 Points)

26 June 2017

as now the days we are listing that compositions can't buy Tobacco Products like Pan Masala, biri, Cigrate, Jarda, Miraaj. what the reason and solution?

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14 Replies

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 26 June 2017

the restriction for opting composition scheme is that the person should not deal with exempted goods.....as you might know tobacco product are outside the perview of gst hence they will be fall in exempted category.......so now you know why.

NITINBHAI PATEL (B.Com) (192 Points)
Replied 07 July 2017

tobaco dealer has to register for GST?

what rate will aplicable for tabacoo dealer?

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 07 July 2017

tobacco is outside gst....hence tobacco dealers do not need to get register or pay GST.........

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 07 July 2017

but tobacco dealers will have to pay existing excise and vat......

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 08 July 2017

I must apologise here.....tobacco dealers are liable to register in gst but they cannot opt for composition dealer as per the latest notification of government......rate of tax is 28% + cess (upto 160%, depended on type of tobacco)....I again apologise here for misinformation given by me earlier.

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Sandeep Surana (Practicing Chartered Accountant) (156 Points)
Replied 08 July 2017

Respected sir, can you please tell me the Notification no. and Date thereof ??

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 08 July 2017

08/2017-Central Tax,dt. 27-06-2017

here is the link-

https://www.cbec.gov.in/htdocs-cbec/gst/notfctn-8-central-tax-english.pdf

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NITINBHAI PATEL (B.Com) (192 Points)
Replied 08 July 2017

thanks for immediate correction/.....

JITENDRA (KKMF) (29 Points)
Replied 09 July 2017

sir tabbaco product can be purchased by composition dealer ?
how TAX will be calculate?

NITINBHAI PATEL (B.Com) (192 Points)
Replied 10 July 2017

i think tabacoo is not applicable for compostion dealer ...so there will be no scop that you can buy from composition dealer..,

may be i am wrong...buy my opinion is above mentioned.

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 11 July 2017

I think the question is tha can a composition dealer buy tobacco?....

And my answer is yes....a composition dealer can buy tobacco....he just cannot manufacture or produce tobacco or tobacco substitute product.........for example a kirana store opted for composition scheme can buy and sell the tobacco products but it can not further process those product....

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