CA in Practise
248 Points
Joined December 2011
Hi all,
Let us discuss in the Professional Manner,
1.Who are all not eligible for Composition Scheme - Section 10(2)(e) of CGST act says " The registered person shall be eligible to opt under sub-section (1), if (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council "
Refer CGST ACT Section 10 : https://www.cbec.gov.in/resources//htdocs-cbec/gst/cgst-act.pdf
2. So, has the govt issued notification for manufacturers who are not eligible for Composition levy ? - Yes, CBEC notificaiton no 08/2017 dated 27 June 2017 issued a notification Which says - " Provided further that the registered person shall not be eligible to opt for composition levy under sub-section (1) of section 10 of the said Act if such person is a manufacturer of the goods, the descripttion of which is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table:-
TABLE
S. No. Tariff item, subheading, heading or Chapter Descripttion (1) (2) (3)
1. 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa.
2. 2106 90 20 Pan masala
3. 24 All goods, i.e. Tobacco and manufactured tobacco substitutes"
Refer the Notification : https://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-8-central-tax-english.pdf
3. So Whats the conclusion ? - Only the manufacturers of the said goods are not eligible for Compostion levy but not the Traders. Hence Ice Cream parlours can opt for Composition levy 
4.What about the rate - Sorry I'm not sure 
---- Still not convinced by my answer ?. Check yourself and refer the FAQ on Compostion levy (Q no 4) issued by CBEC https://www.cbec.gov.in/resources//htdocs-cbec/gst/faq-composition-levy-revised.pdf
Good Luck,
Seenu Srinivas B.Com., CA Final 
CAclubindia
