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?
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. TaxGuru +5 Taxlok +5 ClearTax +5 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) ClearTax +4 onlinetaxwayindia.com +4 ClearTax +4 onlinetaxwayindia.com +3 ClearTax +3 Taxlok +3 onlinetaxwayindia.com +3 Vakil Search +3 Vakil Search +3 Since engine oil is a taxable good and assuming your turnover is within the limit, you should be eligible for the Composition Scheme. ClearTax +3 Vakil Search +3 Scribd +3 💰 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%). ClearTax 📋 Registration and Compliance Registration: You must obtain a GST registration and opt for the Composition Scheme by filing Form GST CMP-02. Vakil Search +4 ClearTax +4 Vakil Search +4 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. Vakil Search 🛢️ 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. Vakil Search +1 ClearTax +1 🆚 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. latestlaws.com 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. TaxGuru +5 ClearTax +5 Scribd +5 Register for GST: Apply for GST registration and select the Composition Scheme. latestlaws.com +11 Vakil Search +11 Vakil Search +11 Maintain Records: Keep detailed records of sales and purchases, even though the compliance burden is reduced under the Composition Scheme. Vakil Search +1 ClearTax +1 Consult a Tax Professional: Consider seeking advice from a GST consultant to ensure compliance and optimize your tax liabilities.
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