Composition dealer liability on exempt goods

Tax of 1% is payable even on exempted goods also

Hi sir but trader of goods registered as a composition dealer in GST is not required to pay GST on sale of Exempted goods.  Refer notification no. 01/2018 (

Can you please share the notification as I cannot see such thing mentioned in that notification

Sir notifications no. 1/2018 central tax

No Chethana Kumar. The Composition Dealer ( TRADER ) is not required to pay tax on Exempt Supply ( Salt in your case ).

As per Notification No. 1/2018 - Central Tax, dated 01.01.2018 ( amending the Principal Notification No. 8/2017 - Central Tax, dated 27th June 2017), the Traders who have opted for Composition Scheme need to pay “half percent of the turnover of TAXABLE SUPPLIES of Goods."

Therefore the trader is required to pay 1% GST on their Taxable Supplies of Goods.

Yes, trader is required to pay 1% GST on their Taxable Supplies of Goods only not all supplies.