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Composite taxation under gst

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This query is : Resolved

P AGRAWAL (Querist)

02 July 2017 x a small trader (grocery shops)sells goods both tax free as well as taxable.Does he require to pay composite tax only on taxable products or does he requires to pay tax on total sales comprising of taxable and tax free products.

CA Anuj Agrawal

CA Anuj Agrawal (Expert)

02 July 2017 refer sec 2(112) “turnover in State” or “turnover in Union territory” means the aggregate
value of all taxable supplies (excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis) and exempt supplies made within a State
or Union territory by a taxable person,..............................................."

Sec 10 states that ......."(a) one per cent. of the turnover in State or turnover in Union territory in case of
a manufacturer,
(b) two and a half per cent. of the turnover in State or turnover in Union territory
in case of persons engaged in making supplies referred to in clause (b) of paragraph 6
of Schedule II, and
(c) half per cent. of the turnover in State or turnover in Union territory in case of...............

IT USES TURNOVER in STATE which means as per def 2(112) above...

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