Compositionscheme under GST

[Guest]

Sir,

Whether the rates prescribed (0.5%, 1%, 2.5%) for the Assesses availing Composition scheme is the final rate taxable or this is only the rates in CGST Bill and the tax rate for levy is to be doubled (CGST+SGST) i.e., 1%, 2%, 5%.

[Himansu Sekhar]

It is the final rate.

[Himansu Sekhar]

Others experts may also give their views

[Ganeshan Kalyani]

The rates are including both CGST and SGST.

[Guest]

Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not exceeding,––

(a) one per cent. of the turnover in State or turnover in Union territory in case of a manufacturer,

(b) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and

(c) half per cent. of the turnover in State or turnover in Union territory in case of other suppliers,

subject to such conditions and restrictions as may be prescribed:

Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore rupees, as may be recommended by the Council.

 

[MADAN RAHEJA]

Provisions contained in CGST Act, 2017 relate only to CGST. As regards SGST, Acts that would be passed by different states would make provisions of CGST Act applicable mutatis mutandis. For example UTGST Act, which is applicable to Union Territories (as good as State), Section 21 states that provisions of CGST Act so far they relate to Composition shall be mutatis mutandis applicable meaning thereby that rates mentioned in CGST Act shall be applicable. In my view composition rates for CGST and SGST would be leviable seperately. Incidently there is no composition provision in IGST Act

[vinod araveti]

In my view GST rates under composition scheme are 1%, 2%, 5%

AI Summary

Composition scheme rates debated: whether central percentages are inclusive or apply separately to central and state tax components. The debate concerns whether the composition percentages specified in the central statute are the final payable amount or whether those percentages apply separately to central and state tax components; one position views the prescribed rates as inclusive of both components, while another contends that central provisions govern only the central levy and states applying the central text mutatis mutandis may impose the same rates separately, affecting practical incidence.