Brick Kilns under composition -

Sir,

There is one confusion whether rate of 6% is to be paid as compostion dealer or a regular dealer without availing ITC (just like in case of restaurants i.e. 5% & 18%)

if somebody opt 6 % scheme can he charge 6% tax  from customers

NO.... IF OPTED COMPOSITION CANNOT CHARGE 6% TAX (NEED TO DEPO FROM POCKET)

YES ,UNDER REGULAR SCHEME CAN CHARGE 6% TAX FROM CUSTOMER

First has to under stand the Notification given. In notification they have given exemption as per Section 11 of GST Act for 3% + 3% on applicable rate if Input Credit not availed. This will not be treated as Composition. 

And also clearly mentioned that no dealer can opt for composition under this business type.

dear rajendra

i think you have to read the notification 2/2019 ct , refers special composition scheme threshold limit of 50lac under sub-section (2a) of section 10,  therein the brick seller is not being restricted & at the same time read the notification 4/2022 ct  which debar the supplier enaged in supply bricks to opt composition scheme threshold limit of 1.5 crore under section 10(1).

so in short ,  the brick seller has been debar from composition scheme threshold limit of 1.5 core but not from under special composition scheme the threshold limit of 40 lac

so those whose turnover in preceding fy is upto 50lac can opt for special composition as mention above & need to pay tax on turnover @ 6% (3%+3%).

so in this case the brick supply dealer has 3 option :

1. can opt for regular by paying 12% with itc (refer notification 1/2022 ct (r))

2. can opt for regular by paying 6% without itc (refer notification 2/2022 ct (r))

3. can opt for special composition scheme by paying tax on turnover @ 6%

*read "50 lac instead of 40 lac" in para 2

Yes, Accepted. And as per Notification No.04/2022 CT 

1. Trader can opt in composition under Sec 10(1) with 1% GST

2.  Manufacturer only has to opt composition under Sec 10(2A) with 6% GST as he is not eligible to opt composition under section 10(1).

dear rajender

point 2 "manufacturer only can opt for composition u/s 10(2a)" as per notification 2/2019 ct ,its trader, manufacturer or any one who is supplying goods or services or both can opt for the same."

(Notification 4/2022 ct is debarring the brick seller or manufacturer for availing composition u/s-10(1))

how do we avail for special composition scheme under 6% GST without taking credit of ITC and also if we do avail the special composition scheme do we need to reverse all the ITC claimed in P.Y 21-22

Dear Gowtham

as per rule 3 r/w rule 4 of cgst act, can opt the composition scheme before beginning of FY by furnishing CMP-02 on portal.

Yes as per section 18(4) r/w rule 3 of cgst act ,  need to pay tax on stock and capital goods by filing ITC 03 within 60 days from date the regular person opts to pay tax under composition scheme

I need some clarification, I have filed CMP04 after notification 02/2022. But after March 2022 I had 200000 ITC, and I have not claimed any ITC since April 2022. Can I offset ITC of 200000?
While I have chosen the slab of 6%.