Composition scheme For Goods & services - GST Ready Reckoner - GST

Composition scheme for goods Suppliers of goods(manufacturer or trader) have the option to pay tax at the concessional rate of 1% (CGST + SGST/UTGST) of the turnover and restaurant service providers have the option to pay tax @ 5% (2.5% CGST + 2.5% SGST/UTGST ) of the turnover. Small taxpayers with an aggregate turnover in the preceding financial year up to 1.5 crore (Rs. 75 lakh for special category States except Himachal Pradesh, Assam, J K) are eligible to pay tax at these rates in the current financial year upto an aggregate turnover of 1.5 crore (Rs.75 lakh for special category States except, Assam, J K and Himachal Pradesh). A mixed supplier who is primarily engaged in supplying services other than restaurant service along with marginal supply of goods could also avail the benefit of this scheme. Value of services that may be provided by the supplier goods: A person opt pay tax under composition levy scheme may supply services[other than those referred to in clause (b) of paragraph 6 of schedule II( complex construction)] of value not exceeding 10% of turnover in a state or UT in the preceding financial year or INR 5 Lakh, whichever is higher. [ second proviso to sec 10(1) inserted vide CGST Act w.e.f 01.02.2019] Composition scheme for services A person engaged exclusively in supply of services other than restaurant service is not eligible for this composition scheme stipulated under sub-sections (1) and (2) of section 10 . In order to provide benefit of composition scheme to persons engaged in supply of services other than restaurant service whose aggregate turnover in the preceding financial year is up to ₹ 50 lakh, a scheme to pay tax @ 6% (CGST + SGST/UTGST) of the turnover was introduced subsequently. The provisions of this scheme are contained in of section 10(2A) .