Gst % on composition dealer

if we sales tax free goods under composition schme , whats gst rate 1% or Nill
Replies (6)
Quick Summary
This discussion clarifies the GST rate applicable to composition dealers selling tax-free goods. Generally, the rate is Nil for traders on exempted supplies. However, manufacturers opting for the composition scheme must charge GST even on their exempted turnover, as per specific notifications.

Nil rated
Ok thanks
If normal dealer purchase from composition dealer
can a normal dealer re sale it with tax or without tax
It's Exempted , no GST Applicable.


note : the composition dealer who are engaged in manufacturing need charge GST on Exempted turnover also. (Refer Notification 1/2028 CT )
Ok thanks
If you are a Trader, then you are not required to pay GST @ 1% on your Exempt Supply Turnover.

Notification No. 8/2017 - Central Tax, dated 27th June 2017 was amended vide Notification No. 1/2018 - Central Tax, dated 01.01.2018, which clearly specified that TRADERS who have opted to pay GST under Composition Scheme are required to pay tax only on their "TAXABLE SUPPLY OF GOODS."

But Manufactures and Service Providers ( covered under Para 6 (b) of SCHEDULE II of the CGST Act 2017 ) are required to pay tax on their Exempt Supply as well ( except few transaction ).

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details