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Indirect Taxation
In case of composition scheme, the GST's (CGST, SGST, etc,.) gets excluded, but why does in the case of manufacturers the GST is applied on the turnover. I could understand the logic in the case of the trader (applies on the taxable turnover) but not in the case of the manufacturers .
Answers (2)
GST is not excluded in composition scheme. Only thing we have to remember is composition dealer will not get the input tax credit and he will be paying small amount as tax at the time of supply. He cannot transfer input credit to the next person in the supply chain too. This rule applies to both trader, manufacturer.
Yoga Vishnu
GST is not excluded in composition scheme. Only thing we have to remember is composition dealer will not get the input tax credit and he will be paying small amount as tax at the time of supply. He cannot transfer input credit to the next person in the supply chain too. This rule applies to both trader, manufacturer.
Thank you so much for clearing the doubt.