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.

[SHIVKUMAR SHARMA]

You have to Pay GST 1%(CGST 0.5% & SGST 0.5%) to the govt .

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sivakumar

[Rahul Jain]

Sir

have a doubt as in composition scheme 5% rate says its for schedule II para 6 clause b which involves all above supplies so rate instead of 1% shouldn’t be 5% as this is more specific as compare to 1% which says general manufacturing.

AI Summary

Composition scheme rate for bakeries: low composition levy advised, while alternate view argues a higher specified rate
The advisory position in the discussion states that bakery supplies by the dealer are subject to the composition scheme levy at a consolidated nominal rate, apportioned between central and state components, treating manufacturing and retail counter sales as eligible for composition. A contrasting submission argues that specified schedule entries for certain food supplies could attract a higher prescribed composition rate, placing classification of individual bakery items as the decisive factor.