GST Composition rate for Manufacturer cum Trader

Aravind Kannan (Future CA ) (148 Points)

30 May 2023

Friends,

What is the gst rate for taxpayer under composition scheme who is both a manufacturer and trader or seller of same goods?

is it 2%? i am confused whether it is 2% or 1% ... kindly confirm.. 1% cgst and 1% sgst?

Thanks in advance.

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (159758 Points)
Replied 30 May 2023

Manufacturers and Traders (Goods)

CGST 0.5% + SGST

0.5%

=== Total 1%

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Aravind Kannan (Future CA ) (148 Points)
Replied 31 May 2023

thanks for the reply sir. but i came across the below quote as well, so please kindly clarify.

All businesses and individuals who are registered under the Composition Scheme are required to pay a GST rate of 1% to 6% depending on the type of business activity conducted by the registered person or business entity.

The applicable composition scheme GST rate features equal SGST/UGST and CGST split i.e. 1% GST = 0.5% CGST + 0.5% SGST/UGST, 6% GST = 3% SGST/UGST + 3% CGST. The composition levy rates under GST are as follows:

1% of the turnover for traders and other suppliers eligible for composition scheme registration
2% of the turnover for manufacturers apart from manufacturers of products not eligible for GST composition scheme.
5% of the turnover for restaurant services
6% of the turnover for businesses providing services/mixed services (other than restaurant services). "

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (159758 Points)
Replied 01 June 2023

Herewith attached link of last notification by GST department for rates of GST levy...

https://taxinformation.cbic.gov.in/view-pdf/1000585/ENG/Notifications

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Aravind Kannan (Future CA ) (148 Points)
Replied 01 June 2023

Thank you so much for the clarification sir

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (159758 Points)
Replied 01 June 2023

You are welcome.

Pankaj Rawat (GST Practitioner) (55010 Points)
Replied 03 June 2023

As per Rule 7 R/w Notification 50/2020 CT (w.e.f 1/4/20) For Manufacturers & Traders the rate is 1% on Turnover.

Note : 1% need to pay on exempted supply also in case of Manufacturer.