GST RATE IN CASE OF COMPOSITION DEALER

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ANUP BOTHARA (Querist)
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23 May 2023
A COMPOSITION DEALER SALES FOLLOWINGS -
1.SAMOSAS , KACHORIES MANUFACTURED BY HIM IN PARCELS TAKE AWAY COUNTER 2.SAMOSAS , KACHORIES MANUFACTURED BY HIM TO CUSTOMERS AT HIS PLACE FOR EATING 3.RESALE OF CHIPS AND OTHER FOOD STUFFS PLEASE GUIDE ON GST COMPOSITION RATE SPECIFICALLY ON ABOVE THREE DIFFERENT BUSINESS ACTIVITIES

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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07 July 2024 As a composition dealer under GST, here's how the different business activities you mentioned would be treated with respect to GST rates:

1. **Sales of Samosas and Kachories in Parcels (Takeaway):**
- These are considered as supply of goods (prepared food items) by a composition dealer.
- GST Rate: 5% under Composition Scheme (CGST 2.5% + SGST 2.5%).
- HSN Code: Depending on the specific type of food product, appropriate HSN codes will apply (e.g., 1905 for bread, pastry, cakes, biscuits).

2. **Sales of Samosas and Kachories to Customers for Consumption at Dealer's Place:**
- Similar to the above, these are also considered as supply of goods by the composition dealer.
- GST Rate: 5% under Composition Scheme (CGST 2.5% + SGST 2.5%).
- HSN Code: Same as above, based on the specific product.

3. **Resale of Chips and Other Food Stuffs:**
- When chips and other food items are resold without further processing or significant value addition, they are treated as supply of goods.
- GST Rate: 5% under Composition Scheme (CGST 2.5% + SGST 2.5%).
- HSN Code: Depending on the type of food items being resold, appropriate HSN codes will apply.

In summary:
- All sales of goods (samosas, kachories, chips, etc.) by a composition dealer attract a GST rate of 5%.
- Ensure correct classification with the relevant HSN codes for accurate GST compliance.

These rates and classifications are based on the assumption that your business qualifies as a composition dealer and adheres to the conditions and limitations specified under the Composition Scheme of GST. Always verify with the latest GST notifications or consult with a tax professional for specific advice tailored to your business.

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