Composition Dealer

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Quick Summary

A registered person manufacturing agricultural equipment, roofs, and gates from steel can potentially register as a composition dealer under GST. If eligible, they can pay tax at a rate of 1% (0.5% CGST and 0.5% SGST) on their turnover. This option is available provided their turnover does not exceed the composition scheme limit of Rs. 1.5 crore, and they comply with all GST regulations. For new businesses, the threshold limit for GST registration is Rs. 40 lakhs for goods in normal category states.

Hemkumar

Hemkumar

(Querist)

20 April 2020 one registered person is engaged in the business of making roofs gates and other agriculture equipment's by using steel, Can he pay tax as composition dealer ?? if yes at what rate ?

c.bakshi

c.bakshi (Expert)

21 April 2020 rates for manufacturer and traders are 1% i.e. 0.5% cgst and 0.5% sgst on the turnover. threshold limit should be taken into consideration and one must comply with all the rules and regulations related to GST LAW.

Hemkumar

Hemkumar

(Querist)

21 April 2020 Means He can pay tax as composition dealer? New business hence no turnover criteria

Spurto Consultancy Services

Spurto Consultancy Services (Expert)

21 April 2020 GST registration is mandatory if the aggregate turnover crosses the threshold limit of Rs. 40 Lacs from sale of goods in normal category states.
After the person becomes liable to register then he can take the registration either as regular dealer or as composition dealer.
You can register your manufacturing business under the composition scheme and can pay tax under the scheme till the turnover do not cross the maximum limit allowable under Composition scheme i.e., Rs. 1.5 cr.

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