turnover in case of composition scheme

For opting for composition scheme the turnover limit has been increased from 1 Crore to 1.5 Crore but yet to be notified.

I'll try to explain in simple words :

The logic behind the Composition levy is to reduce the headache of calculating setoff of tax liability for small tax payers i.e. working the GST collected, GST paid then offset the liability and paying the balance to Govt is now not required. Just need to work on Outward supply and pay minimal tax. ( but RCM is applicable to composition tax payers )

Composition shceme made it simple i.e Do not collect any tax from your customers and you can pay tax at a lessser rate to the Govt.

Following businesses can opt for compostion scheme -

a ) Manufacturer and trader - 1% ( CGST and SGST )

b ) Restaurants not serving alchohol - 5% ( CGST and SGST )

* Service provider cannot opt for Composition scheme.

Since tax is one of the major source of revenue for the Government if composition scheme allowed for every registered dealer then the revenue to the Govt will be at stake and hence the scheme is made available for only specific businesses.

would composition turnover include exempt supplies for calculation g 1% tax??

No............ As per notification 1/2018 CT dt 1.1.18 Composition dealer is liable to deposit GST on TAXABLE TURNOVER.

Hence No need to deposit GST on Exempted Turnover

Aggregate  Turnover  -means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person  on reserve charge basis)  exempt supplies , export  of goods or service or both  and inter state supplies od person having the same permanent  account  number to be computed on all India basis but excludes certral  tax , State tax , intergrated tax and cess . 

compoistion taxpayer  can purchase  form other state  but not sale , please confirm .

prasad ri8 compo. can not sale outside state

Yes mr Rahual  I  have witten  he can purchase but can not sale  out saide state  . 

No need to pay / Calculate Tax on Exempted Supplies by Composition dealer...



@ Mr Prasad Nilugal Sir.,
Your view is exactly correct.

The Aggregate Turn Over will be calculate Registration Purpose and Turn Over Calculations.

But It's not related to Tax Calculation by Composition Dealer's sales value.

The GST on Exempted Turnover not required to pay was effective from 1/1/2018 onwards (as per notification mention above by me ) hence before that there was GST on same

I have a doubt.. If the composition dealer is not allowed to make any inter state supplies how can the same be included in his aggregate turnover while computing tax liability?