1% GST payable on a Composition taxpayer engaged in manufacture of Sweet, Namkins, doing only the counter sales: AAR [Read Order]

GST - Composition taxpayer - manufacture of Sweet - Namkins - counter sales - AAR - Taxscan

The Karnataka Authority of Advance Ruling (AAR) held that 1%  GST payable on a Composition taxpayer engaged in manufacture of Sweet, Namkins, doing only the counter sales.

The applicant, Chikkaveeranna Sweet Stall stated that he is running a sweet stall and is engaged in manufacturing the sweets and doing counter sales on a retail basis. He also states that he is registered as “Composition Taxpayer” under GST and selling the goods over the counter and not having any facility of restaurant or hotel.

The applicant stated that at present they are paying 1% composition tax on total turnover, as he is a manufacturer of sweets and not providing any goods for human consumption at the place of shop.

The applicant has sought the advance ruling in respect of Composition tax payers what is the applicable rate of GST for the manufacturing of sweet and namkeens 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.

The coram of Dr. M.P.Ravi Prasad and T.Kiran Reddy ruled that Rate of GST applicable for a Composition tax payer who are engaged in the manufacture of sweet and namkeens and who is doing only the counter sales, is one percent (0.5% COST and 0.5% SGST) subjected to the condition mentioned in the Notification No. 8/2017-Central Tax dated: 27.06.2017 and further amended notifications.

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In Re: M/s Chikkaveeranna Sweet Stall

CITATION:   2022 TAXSCAN (AAR) 154

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