Sanjiv R Chitransh 08 April 2020
I give sales and service for IT products, I am registered under composition rule.
Suppose I raise bill of supply for Rs20000. in which Rs16000 is for traded products and 4000 as service charge.
What will be the tax liability to be paid by me?
1% for traded products and 6% for service charges or What?
NAVEEN CHAND (Just keep going. You never know how far you can go.) 08 April 2020
if you sells product and provide services along with
so you are allowed to make supply of service of 10% of turnover in state of the preceding FY or Rs. 5,00,000 whichever is higher .
then in such a case rate is 1 % of taxable turnover in state (not turnover in state)
Otherwise you can avail benefit of NN 2/2019
then rate is 6%
Pankaj Rawat (GST Practitioner) 08 April 2020
As your query sounds to be that You are registered as Composition dealer in GST.
Now let me make you clear , that there is 2type of composit dealer.
1. In term of Section 10(1) , the composit dealer under this section can provide supply of Services value not exceeding 10% of turnover in the preceding FY or 5lac whichever is higher & liable to charge 1% GST (trader)
2. In term sub Section (2A) of Section 10 , (Availing benefit of Notification 2/2019 CT(R) , the composit dealer under this scheme can supply services or goods or both , is required to charge 6% (3+3) GST.
So As to above you can either charge 1% GST (Both goods+services) or 6% GST (Both goods+services) as per registration being obtained in above said scheme.
Note : Cannot avail both the scheme. so check under which scheme you have been registered & charge GST accordingly.