ROT for Printed material under Composition Scheme

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This query is : Resolved

Sathish Kumar.J (Querist)

24 November 2022 Sir
i am about to take registration for a client dealing with printed materials [packing boxes, letter pads, souvenirs, etc..] under Compostion scheme. My ROT will come under 1% [0.5%+0.5%] or 6% [3%+3%].

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Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

11 July 2024 For businesses dealing with printed materials like packing boxes, letter pads, souvenirs, etc., under the Composition Scheme in GST, the applicable rate of tax is 1% under the CGST Act and 1% under the SGST Act (totaling 2%). This rate applies to manufacturers and traders of goods.

Here’s a breakdown of how the tax rate is applied:
- For traders (selling goods): 0.5% CGST + 0.5% SGST
- For manufacturers (making goods): 0.5% CGST + 0.5% SGST

So, if your client is primarily involved in selling or manufacturing printed materials, they would qualify for the Composition Scheme with a tax rate of 1% (0.5% CGST + 0.5% SGST).

Please note:
- The Composition Scheme is available for businesses with an aggregate turnover up to Rs. 1.5 crores in the preceding financial year.
- Composition taxpayers are not eligible to collect tax from customers or claim input tax credit on their purchases.
- They need to pay tax out of their pocket at the composition rate on all their outward supplies.

Ensure to verify the latest GST rates and regulations applicable at the time of registration and compliance.

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