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Composition scheme

25 March 2020

any food & beverages supply csn opt composition scheme if he supply food & beverages with alcoholic liquor for human consumption ?

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2 Replies

CA Naveen Chand (Chartered Accountant) (12739 Points)
Replied 26 March 2020

NO as the "liquor for the Human consumption" is non - taxable supplies and Composition dealer can NOT eligiblr to make non taxable supplies (Sec 10(2)(b) )

Composition Dealer is not engaged in making any supply which are not leviable to tax under this Act

Shivam RC (Student) (23683 Points)
Replied 09 April 2020

Alcoholic liquor for human consumption is outside the purview of GST. It is treated as a Non-Taxable Supply.

And as per the Provision of Section 10(2) of the CGST Act 2017 read with Rule 5 of the CGST Rules 2017, persons dealing in "Non-Taxable Supply" is not eligible to opt for Composition Scheme.