Composition scheme on exempt supplies

Is exempt supplies be liable for tax of 1% rate if composition scheme opted?
Replies (3)
Quick Summary
This discussion clarifies the tax implications for businesses opting for the composition scheme when dealing with exempt supplies. It explains that composite dealers generally cannot supply goods not subject to tax. For manufacturers, the 1% rate applies to both taxable and exempt turnover. For traders, the 1% rate typically applies to taxable turnover, with specific nuances depending on whether registration is required for exempt supplies.

First of all, composite dealer cannnot supply of goods which r not leviable to tax. If u r a manufacturer then 1% of turnover (taxable +exempt).
Exempted supplies are no need to take registration
If there are taxable and exempt supplies of trader
then composition rate will be liable to 1% of taxable turnover or total turnover.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 November 2026
Accountant

New Mobile India

Muzaffarpur

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
14 November 2026
Manager - Indirect Tax (GST)

Westbridge Consulting LLP

New Delhi

CA

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details