Composition Scheme in GST Rates, Goods and Services Tax - GST

[Kishan Barai]

what is 1%, 2% & 5% at what stage supplier have to pay in composition Scheme & what entry has to made & where ?? Please explain all 3 above rates on composition Scheme. Thank You

Posts / Replies

[KASTURI SETHI]

1% is for dealers/retailers, 2% for manufacturers and 5% for those dealers and manufacturers who have more than one business. It is called composite supply. Only Restaurant Service is eligible for composite supply. The person who opts for Composition Scheme will mention the remarks, " Working under Composition Scheme" on the invoices and also display on the signboard as "Composition Scheme". That person cannot charge 1%, 2% 5% (whatever applicable) from the customer. He will file quarterly return. This scheme allows relaxation regarding maintenance of records of accounts. The supplier will pay the amount after three months on the basis of his sale. No ITC is allowed.

[Kishan Barai]

Thank You Very Much Sir