- 20th September 2017
- Posted by: web@taxes
- Category: Citizen Service
A registered dealer, whose aggregate turnover in a financial year does not exceed Rs.75 lakhs, is eligible to opt for composition scheme under GST. In the last GST Council, the aggregate turnover limit for availing the scheme has been increased to Rs.1 crore from Rs.75 lakhs.
Composition scheme can be opted only for the supply of goods, not for services. However, the restaurant sector taxpayers can also opt for this scheme. A compounded dealer is restricted from collecting tax from the customer. It means that a composition scheme supplier cannot issue a tax invoice either.
A registered taxpayer, who is registered under the Composite Scheme will pay tax at a rate of 2% of turnover for manufacturer, 5% for restaurant sector and 1% for other suppliers. The tax rate mentioned is CGST & SGST together. Half the above rates is the respective share.