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GST Composition rate for Manufacturer cum Trader

Rate / HSN codes 1034 views 6 replies

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.

 

Replies (6)
Manufacturers and Traders (Goods)    CGST 0.5%  + SGST 0.5% === Total 1%

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). "

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

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


 

Thank you so much for the clarification sir

You are welcome.                         

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.


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