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.

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *


Submit a query
close slider