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exempt supplies in composition scheme

24 April 2017

sir
I have business with turnover under 50 lakhs of exempt supplies but above 20 lakhs.
according to aggregate turnover definition I will be in composition scheme.

but all my supplies are exempt so do I have to register for GST act?

what will be the tax?

if there is any tax then why as I am suppling only exempted goods?

thanks

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16 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 24 April 2017

You will have to register under GST, if your total aggregate supply including exempt supplies exceeds 20 lakhs. Secondly, the exempt supplies under GST is not declared so far, so check the final list under GST, as and when declared. For exempt supplies no need to charge GST or even register for composition scheme.

1 Like

hemant thakkar (21 Points)
Replied 24 April 2017

It means I have to register for GST act but not for composition scheme. Then do I have to file nil returns.

Dilip Darji (392 Points)
Replied 24 April 2017

As long as you are VAT Registrant with State Govt., you need to migrate to GST before 30/04/2017.

Registration of of your unit under GST is all to gether different from claimimg composition scheme.

hemant thakkar (21 Points)
Replied 24 April 2017

thanks for responding
but as all my supplies are exempted goods I didn't had to register for vat number.

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 24 April 2017


	It means I have to register for GST act but not for composition scheme. Then do I have to file nil returns.

If all of your supplies would be exempted under GST, but above 20 lakhs, you will have to get registered as per GST act, and just file NIL returns, specifying the exempted supply!!

hemant thakkar (21 Points)
Replied 25 April 2017

Sir
I have another firm in which I have both taxable as well as exempted goods. Total turnover of this firm would be above 20 lakhs but below 50 lakhs.

Majority of the supplies would be of exempted catagery. so if I go for composition scheme I have to pay GST for aggregate turnover.

so if my taxable supplies are of only 2 lakhs and my aggregate turnover is 30 lakhs I have to pay GST for 30 lakhs?

if yes then how it would be calculated?

thanks

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 25 April 2017

"Majority of the supplies would be of exempted catagery. so if I go for composition scheme I have to pay GST for aggregate turnover."

It is not very much clear from the wordings, whether the composition tax shall be levied on taxable turnover only or over aggregate turn over.

Read: == The taxable persons having Aggregate annual turnover of Rs. 50 lakhs are proposed to be made eligible for Composition levy. ==The amount payable in lieu of tax payable will not be less than 1% of the turnover during the year.

+++ Not less than 1% of the turnover will be payable in lieu of GST.

a. From the wording in section it is not clear that whether amount will be calculated on aggregate turnover or taxable turnover.

b. In case it is calculated on aggregate turnover than it will be a non workable proposal for a taxpayer having exempt and non taxable income.

In second case it would be advisable, not to opt for composition scheme, and charge normal GST.

Tomy Joseph (Superintendent) (86 Points)
Replied 12 June 2017

As per Sec 23(1)(a) of the CGST Act, persons dealing only in exempt or nontaxable goods need get registered in CGST.

1 Like

Recreative Music (6 Points)
Replied 12 June 2017

sir
I am a retailer of readymade garments in composition scheme.
In GST I will continue with this scheme.
I want to know that what is the format of Bill of Supply for Composition retailer.
Kindly provide me format of Bill of Supply in GST for composition retail dealer.
Thank You

Recreative Music (6 Points)
Replied 12 June 2017

Chandan Joshi (15 Points)
Replied 13 June 2017

sir,
i m tobacco manufacturer and my turnover is under 10lac. can i registered for composition scheme......?

Tomy Joseph (Superintendent) (86 Points)
Replied 13 June 2017

Extremely sorry.

Any person engaged exclusively in the business of supplying goods or
services or both that are not liable to tax or wholly exempt from tax under this Act or
under the Integrated Goods and Services Tax Act are not required to get registered. Section 23(1)(a)

The word "NOT" somehow got omitted.

Sorry for any trouble caused.