Eligibility criteria for Composition Scheme for Goods

[Guest]

Is a person dealing in exempt goods eligible for composition scheme because as per section 10(2)(b) of CGST Act the registered dealer should not be engaged in supplying in non-taxable goods.And,if yes then will he pay tax @ 1% on aggregate turnover (i.e.including exempt supplies) or only on taxable supplies?

AI Summary

Eligibility for GST Composition Scheme: Tax at 1% on Taxable Supplies Only, Exempt Supplies Count Toward Threshold, per Sec 10(2)(b) CGST Act. A participant inquired about the eligibility for the GST Composition Scheme for those dealing in exempt goods, referencing section 10(2)(b) of the CGST Act. Responses clarified that the Act distinguishes between exempt and non-taxable goods, with non-taxable goods being those not subject to GST, like alcoholic liquor and petroleum products. Exempt goods, although subject to GST, are exempt under specific provisions. It was concluded that tax under the Composition Scheme should be paid at 1% on taxable supplies only, not on exempt or nil-rated goods. The threshold for the scheme includes exempt supplies in its calculation.