which sales are counting in composition scheme
1 tax paid sales
2 tax paid and exempted sales
As per section 10 of CGST Act 2017 any person opting for composition scheme will have to pay specified percentage of turnover.
For example- 1% of turnover in case of manufacturing
0.5% of turnover in case of trader
As per section 2 of CGST Act turnover shall include all supplies including exempt supplies.
So, accordingly one has to pay tax on total turnover i.e including exempt supply also.
So kindly take into account the exempt supplies for the purpose of paying tax on composite basis
This is one of the major drawback of opting for composition scheme that exempt supplies will also become taxable in this case
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