TaxTMI 
TaxTMI 
Sir, Section 129(1)(a) of CGST Act provides for release of goods detained in transit on payment of applicable tax and penalty. What is the rate of tax here in case of Compostion dealer. Whether it is the rate of tax of that particular goods (ie 5% or 12% or 18% or 28%) or since being a composition dealer applicable rate of tax is 1% ?
Applicable tax under Sec 129
05 Jan 2021 
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Applicable tax under Section 129: composition dealers must pay their composition rate for release of detained goods.
The applicable tax for release of goods detained under Section 129(1)(a) by a composition dealer is the dealer's composition rate rather than the standard item-wise GST rates; the detaining officer lacks power under Section 129 to assess value or alter the applicable rate, although separate enforcement or demand procedures and penalties may be pursued outside the Section 129 release mechanism. (AI Summary)
The applicable tax for release of goods detained under Section 129(1)(a) by a composition dealer is the dealer's composition rate rather than the standard item-wise GST rates; the detaining officer lacks power under Section 129 to assess value or alter the applicable rate, although separate enforcement or demand procedures and penalties may be pursued outside the Section 129 release mechanism. (AI Summary)