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composition with exempt product
what if a manufacturer having registered in composition scheme starts manufacturing a product which is exempt from gst. Is he not eligible to be in composition scheme or he has to pay tax on exempt sales also .
Replies (7)
As per Notification 1/2018, CT dated 01.01.2018, Composition Scheme Dealers ( SECTION 10 ) have to pay tax on their TAXABLE TURNOVER of Goods.
Hence, the Manufacturer have to pay Tax only on the TAXABLE VALUE (TURNOVER) of the Goods manufactured.
The Exempt Supply will not be considered for the purpose of paying GST.
Hence, the Manufacturer have to pay Tax only on the TAXABLE VALUE (TURNOVER) of the Goods manufactured.
The Exempt Supply will not be considered for the purpose of paying GST.
For composition dealer, no need to pay gst on exempted outwards supplies wef 1-1-2018.
Dear sir please mention the exempted product name.
Dear sir please mention the exempted product name.
was manufacturing rusk which is taxable now also started manufacturing bread which is exempt
Bread is exempted but rusk are taxable @ 5%
as said , manufacturer has opted for composition
The rusk is a taxable goods, so you have pay 1% gst on this taxable goods on your outwards supplies in composition scheme.
as per notification 1/2018 , retailers have to pay tax @ 0.5% of taxable supplies, but not in case of the manufacturers. for manufacturers only rate has been changed
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