Eligibility to apply for composition Scheme., Goods and Services Tax - GST

[Sangeetha D]

Is a trader in ice cream also ineligible to opt for the composition scheme?

Posts / Replies

[Sadanand Bulbule]

Yes, subject to threshold limit of turnover.

[YAGAY andSUN]

A trader in ice cream is ineligible to opt for the Composition Scheme under GST in India.

Here's why:

Under Section 10(2)(b) of the CGST Act, a taxpayer cannot opt for the Composition Scheme if they are engaged in the manufacture of goods notified by the Government as ineligible. One such notified item is ice cream and other edible ice, whether or not containing cocoa.

This was notified through:

Notification No. 14/2019 – Central Tax (Rate), dated 7th March 2019

It specifies that manufacturers or traders dealing in:

• Ice cream and other edible ice,

• Pan masala,

• Tobacco and manufactured tobacco substitutes,

are not eligible for the Composition Scheme.

Key Points:

• The restriction applies even to traders (not just manufacturers).

• So, yes, a trader in ice cream cannot opt for the Composition Scheme under GST.

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[Sadanand Bulbule]

I endorse the factual reply of Yagay & Sun. Apology for incorrect earlier post.