Whether a person who is opting for Composition u/s 10 of the GST, is required to pay GST at composite rate on Exempted Goods also?
Section 10 – Composition levy. THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 23-7-2017
Section 10 – Composition levy.
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
Yes, as per the provisions of section 10, tax at specified rate is payable on “the turnover in State or turnover in Union territory”
As per the Section 2(11), the meaning of “turnover in State” or “turnover in Union territory” is as follows:
“(112) “turnover in State” or “turnover in Union territory” means the aggregate value of all taxable supplies (excluding the value of inward supplies on whic
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le to opt under sub-section (1), if
(a) ….
(b) he is not engaged in making any supply of goods which are not leviable to tax under this Act;"
Does the expression "which are not leviable to tax under this Act" cover exempted goods or not? The definition of "exempt supply" in Section 2(47) of the CGST Act is as under:
"(47) “exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply;"
A combined reading of the above provisions suggests that a person who is making supplies of exempted goods as well as taxable goods is
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