as far as supply of exempted goods are concerned , you have to pay tax on that if you have opted composition scheme......but if you also makes 0 rated supply than you are not eligible to opt composition scheme....0 rated supply includes exports (if amount received in forex) and sale to sez developer or sez unit both of which fall under inter state supply....and if you make inter state supply than you cannot opt for composition scheme.....
CAclubindia
