Selling of pan masala

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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)
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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.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

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Lekhraj sood

Lekhraj sood (Expert)
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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.

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