Composition Levy under GST

Composition Levy under GST

A taxable person, whose aggregate turnover in the preceding financial year did not exceed 50 lakh rupees can opt for composition levy scheme & pay tax at a lower rate to be notified by government (it would not be less than 2.5 % for manufacturer & 1 % for other taxable persons)

  • Tax would be calculated on the turnover.
  • Person opting for composition levy cannot take credit of input tax

Following persons cannot opt for composition levy:

  1. A supplier of service
  2. A taxable person engaged in inter-state supplies
  3. A supplier of exempt goods
  4. A taxable person who makes any supply of goods through an electronic commerce operator who is required to collect tax at source.
  5. A person cannot be granted permission for composition levy unless all the registered taxable persons, having the same PAN as held by the said taxable person, also opt for composition levy.

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