Composition rate of tax to Bakery

[Ravikumar Doddi]

Dear sir,

Dealer is running bakery, he manufacture some of the items like, cakes, pastries, bread and like items and he will also trade biscuits and chocolates, cool drinks getting it from GST dealers , doing across the counter sales and partly service. Kindly clarify what is the rate of tax in composition.

AI Summary

Bakery Owner Seeks Clarification on GST Rate Under Composition Scheme; Debate Over 1% vs 5% Rate Cited in GST Schedule A bakery owner inquired about the applicable Goods and Services Tax (GST) rate under the composition scheme for their business, which involves manufacturing items like cakes and trading goods such as biscuits and chocolates. One respondent stated that the GST rate is 1% (comprising 0.5% CGST and 0.5% SGST). Another respondent agreed with this view, while a third questioned whether the rate should be 5% instead, referencing specific provisions in the GST schedule that might apply to the bakery's activities.