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Jewellery business..

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NICSON JOHN

362 Points Posted on 24 January 2022

which scheme is good for jewellery compostion or regular.??.i have no interstate sale and turnover is below 1.5 cr. and is there any additional return other than gst to be filed in case of jewellary..?

Replies (3)

Quick Summary

For a jewellery business with turnover below £1.5 crore and no interstate sales, the choice between the GST composition and regular schemes is discussed. The regular scheme is generally recommended, especially if you purchase from GST-registered suppliers, as it allows for input tax credit. The composition scheme, while simpler, doesn't allow for input tax credit and has a 1% tax on sales. While there are no additional returns beyond income tax, the regular scheme is often more beneficial if you can manage the accounting and compliance.

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

11027 Points Posted on 24 January 2022

The choice between composition and regular in this case depends upon whether you largely have purchases from GST registered parties. If yes you should go for regular scheme as you will be able to get input tax credit on GST paid on purchases made by you which can be adjusted against your output tax liability. Whereas in composition you will not take any input tax credit and pay tax at 1% on sales shown by you.

Vishaal Vk

46 Points Posted on 24 January 2022

My Family Business is into Jewellery. Seeing the market conditions & Profits..... i could highly suggest you to be in regular scheme. Composition scheme has its drawbacks which will not be feasible.... No additional returns. other than Income tax.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 24 January 2022

It's depends upon the profit margin .
But in my view if you have enough resources for handling accounting & GST compliance you must go for Regular scheme.