GST rate for SAC 998892 (Jewellery job workers, not sellers) is 18% (if undertaken on goods belonging to unregistered persons) and 5% (if undertaken on goods belonging to registered persons). Is there any ITC available? if yes, then on which items ITC can be claimed ?
Also the GST rate in Composition Scheme is 6% for SAC 998892. No ITC available.
So, please tell me which scheme is tax saving ?
For a jewellery job worker, the Regular Scheme is generally preferred because it allows you to claim Input Tax Credit (ITC) on your business expenses and enables you to issue tax invoices, which is essential if you work with registered jewellery merchants. The Composition Scheme, while simpler, prohibits you from claiming or passing on ITC, which may be disadvantageous if your business involves significant input costs or B2B transactions.
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