Gst Composition Tax Rate For Manufacturers Reduced To 1% From 2%

GST Payer
watch_later 3 years, 1 month ago

In a welcome move, the composition rate U/s 10 of CGST Act for Manufacturers is reduced from 2% to 1% to equate it with rate for traders.

The calculation of composition levy only on taxable turnover and not on total turnover. So no tax on exempt supply.

The changes will take effect from 1st January, 2018.

Credit: Manoj Agarwal

2 Answers

Pulkit Sharma watch_later 3 years, 1 month ago

It is double benefit.

One tax on taxable supplies only and now they can at par with traders. Many small scale manufacturers directly compete with traders and this will give them equal opportunities.

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anonymous user watch_later 3 years, 1 month ago

It is applicable from 1st January. New year gift from government. Manufacturers have good days.

Make in India will have some push now.

Indian laws are still not suitable for manufacturers.

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