COMPOSITION
SCHEME
As per Section 10, A registered dealer whose aggregate turnover in the preceding year is up to Rs. 1.5 Crore may opt for composition scheme and in that case he will not be allowed to charge any output tax and also no ITC is allowed rather he himself has to pay tax.
The limit of Rs. 1.5 Crore shall be taken as Rs. 75 Lacs in case of following states
- Manipur
- Mizoram
- Nagaland
- Tripura
- Arunachal Pradesh
- Meghalaya
- Sikkim
- Uttarakhand
The composition levy rates under GST are as follows:
| Category of Registered person | CGST | SGST | TOTAL |
|---|---|---|---|
| Manufacturers & Traders of Goods | 0.5% | 0.5% | 1% of Turnover. |
| Supplier making Restaurant Services not serving alcohol | 2.5% | 2.5% | 5% of Turnover. |
| businesses providing services/mixed services ( other than Restaurant Services) | 3% | 3% | 6% of Turnover. |