Selling of pan masala

Save Share

This query is : Resolved

Quick Summary

This discussion addresses whether a GST-registered composite scheme dealer selling pan masala worth £5 lacs is liable for a 1% tax rate or if cess is applicable. While composite dealers typically cannot sell pan masala, if the dealer is a trader and not the manufacturer, the 1% composition tax rate may apply, with cess potentially not being levied under this scheme.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

08 November 2020 A gst registered composite scheme dealer selling of pan masala value rs:5 lacs.
Question:
Dealer tax payble rate 1% only or cess tax applicable in gst act.

Message likes : 1 times

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 November 2020 Composition dealer can't sell pan masala. Currently, on top of the highest GST rate of 28 per cent, 60 per cent cess is levied on pan masala.

Message likes : 1 times

Lekhraj sood

Lekhraj sood (Expert)

09 November 2020 In my view,If you are not the manufacturer of PAN masala but only a trader then you can apply1% rate composition tax. Cess not applicable under composition.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now