Tax applicable on composite rate or regular scheme rate

This discussion clarifies the tax rate applicable when a business switches between composite and regular tax schemes during a financial period. The applicable tax rate on any turnover difference depends on the specific period the turnover was generated and the dealer's tax status (composite or regular) during that time. It's crucial to check filed returns and availed Input Tax Credit (ITC) to determine the correct rate, as the department may apply the higher rate if clarification is lacking.