Hello Friends,
Is it necessary to pay tax under GST for sale of exempted or zero-rated goods @ 1% under composition scheme? I deal with all taxable, exempt and zero-rate goods. Kindly clarify.
Some say i need to pay 1 % on exempt and zero rated as well. please clear my confusion.
I feel that is unfair to pay tax on exempt or zero-rated goods under composition scheme, while there is no tax liability for a regular taxpayer for such goods.
Thanks in Advance.
Yes sorry. Exempted goods. no zero-rated supply.
i am a manufacturer and seller of my products.
please confirm with others also .
First of all can a composition dealer make inter state supplies?
The notification no 01/2018 CT dated 01-01-2018 states that the ‘other suppliers’ (i.e. traders) would be required to pay only on the taxable supplies of goods @ 1%. However, in terms of section 2(108) of the CGST Act, a taxable supply would include exempt supplies also as there is a levy on the exempted goods as well. Hence the wordings of the notification might not be actually executing the decisions of the Council meet.Therefore composition tax has to be paid even on the exempted supplies/nil rated/zero rated.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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