Composition scheme not updated yet on the portal

[LAKSHMINARAYANAN TR]

I'm wondering why Notification No. 1/2018- Central Tax not considered in the law yet on your portal...sec 10 for manufacturers still shows 1% whearas its changed to 0.5% back in Jan 18

[KASTURI SETHI]

It is 0.5 % per cent. of the turnover in State in case of a manufacturer and it is 0.5 % in Central GST in case of a manufacturer. It is 1 % in total (CGST : 0.5 % + SGST 0.5%).

[LAKSHMINARAYANAN TR]

currently it shows as 1% under CGST Act alone for Manufacturers.

[Surender Gupta]

Section 10 prescribes the upper limit of tax which can be levied under composition scheme. Notification No. 1/2018- Central Tax does not change the rate of tax as prescribed under section Section 10.

The effective rate of tax under the composition scheme has been prescribed under the Notification No.8/2017- Central Tax, dated the 27th June, 2017.

Accordingly, the relevant notification has been updated and shall continue to be updated from time to time as and when required.

[Surender Gupta]

With due humble and respect, we could not find any peer who is so prompt in updating the relevant notifications and provisions at such speed and scale. Indeed, some times, error may creep in. But, even if some times there may be inadvertent shortcomings, we are always ready to learn and improve.

Further, it is common understanding that in the Indirect Tax laws, statutory provisions must be read with related notifications and circulars. Without reading the two together, our interpretation of provisions my be wrong as happened in this case.

Notification No. 1/2018- Central Tax nowhere states that provisions of section 10 shall be amended since the provision of an act can be amended by the parliament only and not by the government through the notifications.

[KASTURI SETHI]

Sh.Surender Gupta Ji,. Yes, Sir. It is true and factual position.

[KASTURI SETHI]

TMI posts each and every notification, case larw, circular immediately. This site is providing best services free of cost to the querists in Discussion Forum. It Is the duty of Querist/ assessee to correlate or trace out the status of these in their interests. What I have observed all other web sites and packages also do not post all circulars/notifications and case laws.CBIC site must also be seen.

AI Summary

Composition scheme rate clarified: notifications set the effective levy and cannot amend statutory limits, read together with provisions.
Composition scheme tax for manufacturers is governed by notifications prescribing the effective levy components; Notification No.1/2018-Central Tax fixes the central component at 0.5% of turnover in the State while the State component is 0.5%, whereas Section 10 of the statute prescribes the statutory upper limit and cannot be amended by notification. Correct application requires reading statutory provisions together with notifications and circulars, and portals must update displays to reflect effective notification-based rates.