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Can a super market take composition scheme under GST?.

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Shinoj Davis

112 Points Posted on 23 September 2020

Sir,

A party wants to start a super market. Can they take composition scheme?.

I heard that who deals cola items ( gst cess paying items ), Can't take composition scheme. Is it right?.

Thanks & Regards
Shinoj Davis

Replies (3)

Quick Summary

Yes, a supermarket can generally opt for the GST composition scheme if its annual turnover is below ₹1.5 crore (or ₹75 lakh for special category states), provided other conditions under Section 10 of the CGST Act are met. Crucially, while manufacturers of items like cola, pan masala, or tobacco cannot use the scheme, traders dealing in these products are permitted to do so.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 23 September 2020

Yes, they can take Composition schemes if turnover of business is less than 1.5 Crores (75 lakh for special category states..and subject to other conditions of Section. 10 of CGST Act, 2017.

Manufacturer of ice cream, pan masala, or tobacco or aerated water like coco-cola. can not opt for Composition scheme, there is no restriction regarding trader of this items.

So, As a Trader you can sale all this items under Composition schemes.