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Rates of tax for composition scheme - Gurukul Kendra

Rates of tax for composition scheme

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  • There are different rates for different sectors.
  • In normal cases of supplier of goods (i.e. traders), the composition rate is 0.5 % of the turnover in a State or Union territory.
  • If the person opting for composition scheme is manufacturer, then the rate is 1% of the turnover in a State or Union territory.
  • In case of restaurant services, it is 2.5% of the turnover in a State or Union territory.
  • These rates are under one Act, and same rate would be applicable in the other Act also.
  • So, effectively, the composition rates (combined rate under CGST and SGST/UTGST) are 1%, 2% and 5% for normal supplier (trader), manufacturer and restaurant service respectively. 

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