Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Solve my problem

293 views

Save Share

NIKITEJ Chary

CA Final

23 Points Posted on 13 May 2021

Jewellery business eligible for composition scheme @ 1% (intrastate) or should I register for regular @ 3%. Cilent is willing to bear extra 1% burden and turnover is less than 75 lakhs.

All are saying difference in opinion .

Please solve my query.

Thank you.

Replies (3)

Quick Summary

A jewellery business owner is seeking advice on whether to opt for the 1% composition scheme or the 3% regular GST registration. Despite a turnover below 75 lakhs and willingness to pay the extra 1%, there's conflicting advice. The core question revolves around the taxability of making charges and whether they constitute a composite supply of goods or a separate supply of service, impacting eligibility for the composition scheme.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 13 May 2021

The jewellery business should be opt for composition scheme at the rate of 1%

NIKITEJ Chary

CA Final

23 Points Posted on 13 May 2021

Making charges with sale of jewellery are taxable @ 1% ? and making charges is consider as supply of service should I consider in limit 10% of turnover in preceding financial year or 5 lakhs which ever is higher as per 10(2) ?

Navin Agarwal

296 Points Posted on 15 May 2021

In my opinion, making charges with jewellery is a composite supply under 2(30) read with section 8 where jewellery is the principal supply and hence I guess the entire arrangement should be viewed as goods!