composition scheme tax implication

[mithun saha]

sir

my turnover consists of Nil Rates supply ₹ 100000/( Seeds)- and Taxable goods supply ₹ 100000/( fertilizer)- . I am under composition scheme. Under composition scheme on which i have to pay tax @1% either on total ₹ 200000/- or on taxable goods supply Rs.100000/-

please advise

AI Summary

GST Composition Scheme: 1% Tax Rate Applies Only to Taxable Supplies, Not Nil-Rated; Consider Aggregate Turnover Definition. A user inquired about the tax implications under the GST composition scheme, specifically whether the 1% tax rate applies to the total turnover of 200,000, which includes both nil-rated supplies (100,000 for seeds) and taxable supplies (100,000 for fertilizer), or just the taxable portion. Respondents clarified that the 1% tax applies only to the taxable supplies. Additionally, the threshold for the composition scheme is 75 lakhs, and the definition of 'aggregate turnover' should be considered for computation.