sale of exempt goods liable to tax for composition dealer

[prasanna Hegde]

whether composition dealer is required to pay tax on sale of exempted goods along with taxable goods @ 1% kindly inform

AI Summary

Composition Dealers Must Pay 1% GST on Total Turnover Including Exempt Goods Under Section 10(1)(a) CGST Act 2017. A query was raised regarding whether a composition dealer under GST must pay tax on the sale of exempted goods along with taxable goods at a rate of 1%. Several responses indicated that, under the CGST Act, 2017, a composition dealer is required to pay tax on the turnover, which includes both taxable and exempt supplies. Specifically, Section 10(1)(a) and related rules suggest that a 1% tax applies to the aggregate turnover, including exempt supplies. The consensus among the respondents was that tax should be paid on the entire turnover, including exempt goods.