TaxTMI 
TaxTMI 
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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
Composition scheme not updated yet on the portal
29 Dec 2018 
6 Replies 
1269 Views Asked by
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. (AI Summary)
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. (AI Summary)