GST: Manufacturers and Other Suppliers Needs to pay One Percent Tax under Composition Scheme [Read Notification]

Composition Scheme opting- Taxscan

The Central Board of Excise and Customs (CBEC) last day notified the effective rate of tax under composition scheme for manufacturers and other suppliers.

As per the Notification, manufacturers and other suppliers are required to pay one percent of the turnover in the State in case of a manufacturer.

In the case of other suppliers, one percent of the turnover of taxable supplies of goods is payable.

Composition scheme is an alternate method of taxation, which allows small businesses with annual turnover up to Rs One crore, to pay tax at a concessional rate, as well as reduce the compliance cost. The revenue threshold is Rs 75 lakhs for dealers across nine states including Arunachal Pradesh, Nagaland and Tripura among others. The enrollment into the plan is optional.

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