Composition levy for fully exempted dealer

Sec 23(1) of CGST also exempts the supplier from registration if wholly exempt supplies are made.

But if registration is to be taken voluntarily, it can be taken.

Further what's the use of voluntary registration under COMPOSITE scheme, the dealer cannot pass credit nor can it take credit!!

kaise kapde wale

Originally posted by : saloni
	Sec 23(1) of CGST also exempts the supplier from registration if wholly exempt supplies are made. But if registration is to be taken voluntarily, it can be taken. Further what's the use of voluntary registration under COMPOSITE scheme, the dealer cannot pass credit nor can it take credit!!

Thanks for reply.

But what is the meaning of "any supply of goods which are not leviable to tax under this Act" as mentioned in Section 10(2)?

To whom it applies?

Goods not leviable to tax are different from exempt goods.

Not leviable means they are not covered in GST. The supply of goods are not goverened by GST.

Whereas exempt goods are governed by GST but in public interest they are made exempt. They are not out of the purview of GST.

Goods as mentioned in sec 9(2) are those goods on which GST is not levied as of now.

Originally posted by : saloni
	Goods not leviable to tax are different from exempt goods. Not leviable means they are not covered in GST. The supply of goods are not goverened by GST. Whereas exempt goods are governed by GST but in public interest they are made exempt. They are not out of the purview of GST.

So you mean to say Only those goods which are not covered by GST Law such as crude petroleum, natural gas, petrol, diesel, aviation turbine fuel, liquor/alcohol for human consumption are not eligible to opt Composition Levy?

One more Query - 

A Shopkeeper of Gifts Centre (Not registered earlier under the Old Laws) wants to NEWLY register for Composition Scheme. He has some stocks of gifts which have Invoices from Registered Dealer under Old Act (VAT) and stocks from unregisterd dealer also.

Now if he wants to register for Composition Scheme,

1. Is he required to mention details of these stocks in registration Application ?

2. Is he required to pay tax on these stocks from Un-registered Dealer on RCM basis?

Please kindly suggest.

A dealer trading in textiles which was tax free in vat regime having turnover more than 75 lakh during previous year i.e. 2016-17. Now he is applying for registration under GST, can he opt for composition as a new dealer ?
If yes then any liability on closing stock of textiles ?
Considering new registration whether condition of preceeding year turnover is applicable to such dealer ?
Please reply & clarify the issue