Ice cream, tobacco manufacturers cannot opt for GST composition scheme
New Delhi: Ice cream, pan masala and tobacco manufacturers cannot opt for the GST composition scheme under which businesses are allowed to pay at a lower tax rate if their turnover does not exceed Rs75 lakh.
As per the notification issued by the finance ministry, manufacturers of ice cream, and other edible ice, whether or not containing cocoa, shall not be eligible to opt for composition levy under the act. Also, makers of tobacco and manufactured tobacco substitutes will not be able to opt for the scheme. Under the composition scheme, where the turnover does not exceed Rs 75lakh, manufacturers will have to pay 1% of turnover as GST, traders 2.5% and 0.5% of turnover in state in case of other suppliers. This turnover limit was hiked earlier this month by the GST council from Rs50 lakh.
However, the turnover limit for availing the composition scheme in the eight northeastern states and Himachal Pradesh will be Rs50 lakh. Businesses with an aggregate turnover of up to Rs20 lakh (Rs10 lakh in the northeast and special category states) are exempt from GST. Businesses whose aggregate turnover in the preceding financial year is less than Rs75 lakh can opt for a simplified composition scheme wherein tax will be payable at a concessional rate on the turnover. Besides, the finance ministry has also notified 12 amendments to the Central Goods and Services Tax (CGST) Rules.
Among other things, the amendments provide for cancellation of registration of a business for violation of anti-profiteering rules. With regard to migration of persons registered under the existing service tax, excise or VAT laws, the notification says that where a registration certificate has not been issued within 15 days from the date of filing of information and no notice has been issued, the registration shall be deemed to have been granted.
Besides, all applications, including replies, if any, to the notices, returns, appeals or any other document required to be submitted under the provisions can be verified through e-signature or any other mode of signature or verification as may be notified.
- Amazon’s Shoppers Stop deal is like most buys. Not essential
- Sports ministry recommends shuttler P.V. Sindhu for Padma Bhushan
- What should an agricultural export promotion policy focus on?
- Nasa’s heartbeat probe helping rescue Mexico quake survivors
- Global gold prices fall as dollar firms, North Korea worries ease