Composition Scheme

Question 1

Who can opt for composition scheme?

Answer 1

Aggregate Turnover <= 1.5 cr / 75 lakhs ( for MMTN MUSA PT)

Question 2

What is the rate of Gst for manufacturer under composition scheme?

Answer 2

1%(CGST + SGST) of Aggregate Turnover

Question 3

What is rate of Gst for traders under composition scheme?

Answer 3

1% of taxable turnover

Question 4

What is the rate of Gst for restaurants services ( non alcoholic) under composition scheme?

Answer 4

5 % of aggregate turnover

Question 5

What is the rate of Gst for a service provider under composition scheme?

Answer 5

6% of Aggregate turnover u/s 10(2A) where aggregate turnover <= 50 lakhs

Question 6

Who can not opt for Composition scheme?

Answer 6

• person making non taxable supply
• person making inter state supply
• manufacturer of notified goods
• Non Resident Taxable Person
• E commerce operater u/s 52
• Service provider except restaurant

Question 7

State the exception of service provider who can opt for composition scheme?

Answer 7

Trader who supplies both goods and services then the rate of Gst for services will be 10% or 500000 whichever is higher

Question 8

State the notified goods which can’t opt for composition scheme

Answer 8

Manufacturer of
- pita
- fly ash brick
- bricks from fossil
- building bricks
- earthen tiles

Question 9

What includes in aggregate turnover?

Answer 9

All taxable supply
All zero rated supply
All exempt subsidiary ( nil rated or wholly exempt)
All inter state supply ( previous Inter state supply)

Question 10

What are excluded in aggregate turnover?

Answer 10

CGST/ SGST/ UTGST / IGST
Composition Cess
Inward Supply on which GST paid under RCM
Interest on loan advance or deposit (only taken u/s 10)