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gold jewellery retailer composition scheme

09 July 2017

composition me jo dealer hai retailer se kitna gst charge karega 1% ya 3% agar 3% charge karta hai to retailer ko 4% dena padega ? kyonki retailer costmer se gst tax le hi nahi payega to composition scheme to mahgi padegi please guideline den

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9 Replies

rajesh soni (3 Points)
Replied 09 July 2017

mai composition retailer hun mai registered dealer se purchase karta hun to dealer mujhse kitna % gst charge karega 1% ya 3% gold jewellery me

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CA Rashmi Gandhi (Chartered Accountant) (86477 Points)
Replied 09 July 2017

Composition scheme is not advisable for Sarrafa dealers who purchase from unregistered dealer.

Because they have to purchase after paying @ 3% under RCM for which no credit available.

Also on sale they have to pay @ 1% on sales which would not be collected from customer .

So they have to pay 4% aggregate.

Sudarshan Mehta (partner) (62 Points)
Replied 09 July 2017

aap agar composition me hai to dealer ya manufacturer aapse 3% hi lega. Aapko input nahi milega aur phir se aap 1% composition tax bharoge.

Agar aap unregistered se kharid rahe ho to reverse charge me 3% bharna hoga aur jiska input credit nahi milega aur composition me hone ki wajah se composition 1% bhi bharna hoga. totally 4%.

CA Rashmi Gandhi (Chartered Accountant) (86477 Points)
Replied 12 July 2017

Rakesh Kumar (learner) (24 Points)
Replied 16 August 2017

Originally posted by : CA Rashmi Gandhi
	Composition scheme is not advisable for Sarrafa dealers who purchase from unregistered dealer.Because they have to purchase after paying @ 3% under RCM for which no credit available.Also on sale they have to pay @ 1% on sales which would not be collected from customer .So they have to pay 4% aggregate.

mam what about if we purchase from registered dealer.

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CA Rashmi Gandhi (Chartered Accountant) (86477 Points)
Replied 17 August 2017

Then you have to pay tax @ 3% on purchase for which no credit allowed. & also on sale you have to pay @ 1%

Rakesh Kumar (learner) (24 Points)
Replied 19 August 2017

Originally posted by : CA Rashmi Gandhi
	Then you have to pay tax @ 3% on purchase for which no credit allowed. & also on sale you have to pay @ 1%

mam

than there is no use of opting compostion scheme for saraffa dealers because then cannot charge it from customer

whats your take on this mam ,should sarrafa dealer whose turnover is less than 70lkh opt for composition scheme or regular scheme

in respect of tax and everything.

CA Rashmi Gandhi (Chartered Accountant) (86477 Points)
Replied 19 August 2017

Sarrafa Dealers have to opt for Composition Scheme.

PURUSHOTTAM (Advocate) (16 Points)
Replied 13 January 2018

Mam,

if We purchase old gold or jwellery from customer and then return given to the customer jweller after refurbish or making new then composition available or not