Benefit of composite or regular scheme jewellery shop

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This discussion explores the benefits of the composite versus the regular GST scheme for jewellery businesses. The composite scheme offers lower GST compliance and tax rates, making it attractive for B2C sales, especially below the Rs. 1.50 crore threshold. However, the regular scheme allows for Input Tax Credit (ITC) claims, which can be advantageous depending on your business model and customer base.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

25 January 2022 Sir,
A gst registered composite scheme jewellery business dealer sales turnover rs:60 lacs yearly.if dealer convert composite scheme to regular scheme applied recently.
Question:
benefit of composite or regular scheme jewellery business dealer .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 January 2022 Composition dealer less GST compliance lower tax customers may prefer.
Regular scheme ITC can be availed.

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Lekhraj sood

Lekhraj sood (Expert)

30 January 2022 Your sales will be mostly B to C. The rate of GST chargeable will be much lower than regular dealer. So it is beneficial to go for composition scheme till you reach the threshold limit of Rs.1.50 cr.

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