Updated Online video classes available for CA,CS,CMA for May20 and Nov20 batch. Call: 1800-3000-0505

Composition Scheme - Drinking Water


Krishna (Manager - Genesis Tax Consultant)     20 January 2020

Krishna
Manager - Genesis Tax Consultant 
 11 likes  499 points

| My Other Post

Dear Sir / Madam,

Mr X is doing a water business also having his own Water plant, and his turnover is around 1 crore for the year.

He sells water with label Packing and also sells in a container without labelling.

He does both Taxable and Exempted sales.

My question, when he choose Composition Scheme should he need to pay 1% tax for exempted sales also?

Anshuman Basu (account -GST)     20 January 2020

Anshuman Basu
account -GST 
 36 likes  1006 points

View Profile | My Other Post

I thik you should go for regular registration

avater

Krishna (Manager - Genesis Tax Consultant)     20 January 2020

Krishna
Manager - Genesis Tax Consultant 
 11 likes  499 points

View Profile | My Other Post

Dear Sir, Why should for regular registration?

Anshuman Basu (account -GST)     20 January 2020

Anshuman Basu
account -GST 
 36 likes  1006 points

View Profile | My Other Post

In comparison scheme there are few limitation. U not take ITC. U not sale inter state

avater

Shivam RC (Student)     21 January 2020

Shivam RC
Student 
 1669 likes  13684 points

View Profile | My Other Post

You can opt for COMPOSITION SCHEME Sir if your Aggregate Turnover does not exceeds Rs. 1.5 crore.

As far as the GST Rate is concerned, it is 1% for the Manufacturer ( 0.5% CGST + 0.5% SGST ). This 1% GST needs to be paid on the Turnover in State or Union Territory. Even on Exempted Supplies , you need to pay 1% GST.

Only the Traders are required to pay 1% GST on their "TAXABLE SUPPLY OF GOODS" ( i.e. they are not required to pay GST on exempted supply ) vide Notification No. 01/2018 - CT , dated 01.01.2017.

Refer Notification No. 08/2017 - CT, dated 27.06.2017 read with Notification No. 01/2018 - CT, dated 01.01.2018.

Warm Regards.

1 Like
avater

Pankaj Rawat (GST Practitioner)     21 January 2020

Pankaj Rawat
GST Practitioner 
 3154 likes  42152 points

View Profile | My Other Post

Yes ..... if you are engaged in Manufacturing ,you are liable to pay 2% GST (1% CGST + 1% SGST) on Exempted supply also.

Kindly Refer Notification 8/2017 CT & Notification 1/2018 CT

avater

Krishna (Manager - Genesis Tax Consultant)     21 January 2020

Krishna
Manager - Genesis Tax Consultant 
 11 likes  499 points

View Profile | My Other Post

Dear Experts, Thank you for all your updates!!

avater

Krishna (Manager - Genesis Tax Consultant)     21 January 2020

Krishna
Manager - Genesis Tax Consultant 
 11 likes  499 points

View Profile | My Other Post

Dear Sir,

I have a clarification, in the below notification, as mentioned above the traders not required to pay tax on exempted goods no where it has been mentioned. Could you please assist me in this regard

Notification No. 1/2018- Central Tax

New Delhi, the 1 st January, 2018

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.8/2017- Central Tax, dated the 27 th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 647 (E), dated the 27 th June, 2017, namely:-

In the said notification, in the opening paragraph, - (a) in clause (i), for the words “one per cent.”, the words “half per cent.” shall be substituted; (b) in clause (iii), for the words “half per cent. of the turnover”, the words “half per cent. of the turnover of taxable supplies of goods” shall be substituted.

 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »