Vat for composition firm sailing engine oil in rajasthan

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This query is : Resolved

jamil khan (Querist)

27 October 2014 Sir I am going to start a retail store for engine oil sales in Rajasthan.I want to know what I have to pay to government as a Composition firm owner?
What if i go for a TIN no?

jamil khan

jamil khan (Querist)

27 October 2014 Plz answer

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

02 August 2025 If you're planning to start a retail store selling engine oil in Rajasthan and are considering the GST Composition Scheme, here's what you need to know:
✅ Eligibility for GST Composition Scheme in Rajasthan
Turnover Limit: Your aggregate turnover in the preceding financial year should not exceed ₹1.5 crore.
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Nature of Business: You must be engaged in the supply of goods within the state and not involved in:
Inter-state sales
Supply of non-taxable goods
Supply of goods through an e-commerce operator required to collect tax at source
Manufacturing of goods specified under the GST Act (e.g., ice cream, pan masala, tobacco)
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Since engine oil is a taxable good and assuming your turnover is within the limit, you should be eligible for the Composition Scheme.
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💰 Tax Rate Under the Composition Scheme
Tax Rate: As a manufacturer or trader of goods, the applicable tax rate is 1% of your turnover, divided equally between CGST (0.5%) and SGST (0.5%).
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📋 Registration and Compliance
Registration: You must obtain a GST registration and opt for the Composition Scheme by filing Form GST CMP-02.
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Returns: Under the Composition Scheme, you are required to file:
GSTR-4 (quarterly return)
GST CMP-08 (monthly payment of tax)
Invoicing: You must issue a Bill of Supply instead of a tax invoice, as input tax credit (ITC) is not available under this scheme.
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🛢️ Considerations for Engine Oil Sales
Product Classification: Ensure that engine oil is classified under the appropriate HSN code and is not subject to any specific restrictions or higher tax rates under GST.
Local Sales: Since you're operating in Rajasthan, all your sales should ideally be within the state to comply with the Composition Scheme's requirements.
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🆚 Option for Regular GST Registration
If you anticipate your turnover exceeding ₹1.5 crore or plan to engage in inter-state sales, you might consider opting for regular GST registration. This would allow you to:
Claim Input Tax Credit (ITC): Offset taxes paid on purchases against your output tax liability.
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Engage in Inter-State Sales: Expand your market beyond Rajasthan.
File Monthly Returns: Submit GSTR-1, GSTR-3B, and annual returns.
📝 Next Steps
Assess Your Turnover: Ensure your projected turnover is within the ₹1.5 crore limit.
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Register for GST: Apply for GST registration and select the Composition Scheme.
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Maintain Records: Keep detailed records of sales and purchases, even though the compliance burden is reduced under the Composition Scheme.
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Consult a Tax Professional: Consider seeking advice from a GST consultant to ensure compliance and optimize your tax liabilities.

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