Composition Levy


Tax payers whose aggregate turnover of goods(supply of service not considered) in the previous financial year does not exceed Rs.75 lakhs (aggregate turnover computed on all India basis), shall have the option to pay tax on composition, which shall not be less than one percent till his turnover in the financial year exceeds Rs.75 lakhs. Persons effecting inter state trade or persons availing input tax credit facility are not eligible. Registered persons availing the composition scheme is not entitled to collect tax from customers. Service providers except those providing Restaurant service are not eligible for the levy. 

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