GST Composition Scheme: Contractor Exceeds Rs. 50 Lakh Turnover, Switches from 6% to 18% Tax Rate.
Under the GST composition levy, turnover in a State or Union territory includes taxable supplies, exempt supplies, exports, and inter-State supplies, excluding certain taxes and cess. For tax determination, turnover excludes supplies before registration and exempt services like loans or advances. A civil contractor in Delhi, starting services in April, with a turnover of Rs. 50 lakh by September, opts for the composition scheme. Initially, he pays 6% tax on Rs. 30 lakh, but as his turnover exceeds Rs. 50 lakh by September, he must switch to the standard 18% tax rate for subsequent quarters.
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