GST COMPOMSITION SCHEME, Goods and Services Tax - GST

[TM ARJUN]

DEAR SIR

PLEASE GIVE ME DETAILS FOR - IF A DEALER ENGAGED BUSINESS IN LOCAL STATE ONLY BY MFG 50% AND SERVICES 50% , BOTH OF HIS TURNOVER BELOW 75 LACKS WHETHER HE IS ELIGIBLE FOR OPTION TO COMPOSITION TAX SCHEME UNDER GST.

T M ARJ

CHENNAI

Posts / Replies

[KASTURI SETHI]

Only one servic i.e. restaurant service is eligible for composition scheme. There is no such like 50 : 50 provision in GST.

[Gorantla Bhaskar Rao]

Dear querist

Small tax payers with an aggregate turnover in a preceding financial year upto ₹ 75 lakhs shall be eligible for composition levy. Under the scheme, a tax payer shall pay as a percentage of his turnover without the benefit of Input tax credit. A tax payer opting for composition levy shall not collect any tax from his customers. As rightly explained by Shri Sethi sir, in case of services, only restaurants can opt for composition scheme.