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Gst composition

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S.Nirmal Singh

Articled Assistant

45 Points Posted on 06 September 2019

Hi Team CCI,

One of my client Selling M -Sand and doing the business of transportation of goods (Sand). Turnover is less than 1.50Crores

Whether can he opt for Composition Scheme??. If opting for composition, Tax has to be paid only on Sale of Sand or Sand + Transportation Charges?

Replies (1)

sujith kumar dasa

banglore

988 Points Posted on 06 September 2019

Hi,

If your client is into sale of sand and he is also providonf transport facility for such sale of sand. Then this transaction becomes a composite supply i.e., both sale of sand and transport sercices, where the main service is sale of sand and transport services is naturally bundled and hence GST rate applicanle on sand is also applicable for Transport charges.

If he opts for composition then tax on entire value including transport charges.

Note: The above is based on assumption that the client is not into seperate transport agency services but only charges for transport of sand sold by him.