TaxTMI 
TaxTMI 
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?
Eligibility criteria for Composition Scheme for Goods
17 Feb 2020 
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Composition scheme eligibility: exempt supplies count for threshold but tax applies only to taxable supplies
Composition scheme eligibility depends on whether supplies are "leviable under this Act" rather than mere exemption; exempt supplies remain leviable and do not bar composition. Aggregate turnover for threshold purposes includes exempt supplies. The composition levy for traders is computed with reference to turnover of taxable supplies, so tax under the composition scheme applies to taxable supplies only, not to exempt or nil-rated supplies. (AI Summary)
Composition scheme eligibility depends on whether supplies are "leviable under this Act" rather than mere exemption; exempt supplies remain leviable and do not bar composition. Aggregate turnover for threshold purposes includes exempt supplies. The composition levy for traders is computed with reference to turnover of taxable supplies, so tax under the composition scheme applies to taxable supplies only, not to exempt or nil-rated supplies. (AI Summary)