Composition scheme for jewellers

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This query is : Resolved

Vikas Sinha (Querist)

01 October 2017 Many CAs are saying that Composition scheme is not for jewellers because they provide making service and others are saying that they can opt for Composition scheme. So please clarify that How to calculate GST for both regular and Composition scheme for jewellers.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

01 October 2017 In my opinion it is better to opt for composition

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

01 October 2017 As earlier they have to pay @3% on old jewelry purchased from unregistered it is not suggested. But after notification that no RCM applicable on old goods you can opt for composition.

Vikas Sinha

Vikas Sinha (Querist)

01 October 2017 but ma'am how to pay GST on jewellery , is it 1% on whole amount including making charges or 2% as he is manufacturer... please clarify

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

01 October 2017 1% on overall

Vikas Sinha

Vikas Sinha (Querist)

01 October 2017 thank you ma'am but , when a jeweller pays some amount of making charges as job work charge to a karigar then if karigar is unregistered then he should charge 5% to karigar under RCM then how can he opt for composition scheme...:(

Message likes : 1 times

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

01 October 2017 Yes if you are also doing making work & its portion is large then its better for you to opt regular scheme

Message likes : 2 times

Vikas Sinha

Vikas Sinha (Querist)

01 October 2017 Thank you So much ma'am....

Message likes : 1 times

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

01 October 2017 Welcome.......

Message likes : 1 times

Vidya Jain

Vidya Jain (Expert)

02 October 2017 In my opinion, Jeweller can not go fo composition scheme. It should opt for regular scheme only.

CA Mohit Kumar

CA Mohit Kumar (Expert)

02 October 2017 Mr. vikas, Composition scheme is only availble to restaurant service proovider... In jeweller case, Dealer also provide job work service to customer so composition benefit cannot be takencannot be taken.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

31 October 2026 Composition is not limited to restaurants: a jeweller selling jewellery (making charges billed with it are part of the goods supply) can opt at 1% if aggregate turnover is up to Rs 1.5 crore, but cannot make inter-State sales, and job work for others counts against the services cap of 10% of turnover or Rs 5 lakh.

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