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2022 (1) TMI 247 - AAR - GSTRate of GST - Composition tax payers - manufacturing of sweet and namkins and selling the goods over the counter not having any facility of restaurant or hotel or not a part thereof and not giving for human consumption at the place of shop - HELD THAT - Since the applicant is into manufacture of sweets, he can opt to pay GST at one per cent. of the turnover subjected to the condition mentioned in the Notification No. 8/2017 (Central Tax) dated 27.06.2017 and further amended notifications.
Issues:
Determining the applicable rate of GST for a composition tax payer engaged in manufacturing sweets and doing counter sales. Analysis: The applicant, a proprietorship concern registered under the CGST Act and KGST Act, sought an advance ruling on the applicable GST rate for manufacturing sweets and namkins and selling them over the counter without providing any facility for human consumption on-site. The admissibility of the application was confirmed under Section 97(2)(e) of the CGST Act 2017. During the personal hearing, the applicant reiterated the facts stated in the application. The Authority for Advance Rulings clarified that the provisions of the CGST Act and KGST Act are similar and differ only in specific provisions. Considering the submissions and relevant facts provided by the applicant, it was noted that the applicant, being a composition tax payer engaged in manufacturing sweets and conducting counter sales, inquired about the applicable GST rate for the same. Referring to Notification No. 8/2017-Central Tax, it was highlighted that an eligible registered person with a turnover not exceeding seventy-five lakh rupees in the previous financial year may opt to pay GST at one percent of the turnover in the state in case of a manufacturer. Therefore, the applicant, being a manufacturer of sweets, can opt to pay GST at one percent of the turnover subject to the conditions specified in the mentioned notification and subsequent amendments. Based on the above considerations, the Authority ruled that the rate of GST applicable for a composition tax payer engaged in manufacturing sweets and namkins and conducting only counter sales is one percent (0.5% CGST and 0.5% SGST) subject to the conditions outlined in Notification No. 8/2017-Central Tax and subsequent notifications.
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