Composition Levy under GSTadmin
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:
- A supplier of service
- A taxable person engaged in inter-state supplies
- A supplier of exempt goods
- A taxable person who makes any supply of goods through an electronic commerce operator who is required to collect tax at source.
- 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.