One of my friend is a composition dealer, previously supply of Coke, now he is want to supply of salt also...
whether is liable to tax even supply of exempt goods(what is the treatment on supply of Salt if supplier is composition dealer)
6 Replies
CA ABHAY GUPTA
(Practice)
(3235 Points)
Replied 08 July 2020
Tax of 1% is payable even on exempted goods also
chethan data
(298 Points)
Replied 08 July 2020
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 (
CA ABHAY GUPTA
(Practice)
(3235 Points)
Replied 08 July 2020
Can you please share the notification as I cannot see such thing mentioned in that notification
Shivam RC
(Student)
(23683 Points)
Replied 08 July 2020
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.
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.
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 23 July 2020
Yes, trader is required to pay 1% GST on their Taxable Supplies of Goods only not all supplies.
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