watch_later 19/02/18


Do composition dealer need to pay 1% tax on nil (0%) rated supply. 

Please suggest.

1 Response | Latest response: 20/02/18 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 20/02/18

Legal provision -

Reference to section 10 ,CGST Act 2017

Registered persons under GST opting for Composition scheme have to pay tax on "turnover in state" at either of the three tax rates:-

If person is

- a Manufacturer - 1% CGST & 1% SGST

- a hotel ,restaurant etc providing supply of service under para 6 (b) of Schedule II.- 2.5% CGST & 2.5% SGST

- ANY Other - 0.5% CGST & 0.5% SGST.

Note:- Key term to know is the " turnover in state"

Turnover in state includes -

1.all taxable supplies + all exempt supplies (including non taxable supplies) +exports supply + inter - state supply.

Answering your question - Yes , Turnover for Tax in composition scheme will include Nil rated supply

Refernce links

For exempt supply definition

Hope it helps .

Thanks and regards 

Prashant (CA Final Student)



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