Under the GST Composition Scheme, the tax rates for businesses are fixed based on their turnover and the type of business they operate. The following are the GST rates applicable to businesses under the Composition Scheme:
- Manufacturers and traders: Manufacturers and traders who opt for the Composition Scheme have to pay a tax at the rate of 0.5% of their turnover. However, they cannot claim input tax credit.
- Restaurants: Restaurants that opt for the Composition Scheme have to pay a tax at the rate of 5% of their turnover. However, they cannot claim input tax credit.
It is important to note that businesses under the Composition Scheme cannot charge GST from their customers. They have to pay tax on their turnover out of their own pocket. Additionally, they cannot claim input tax credit on their purchases.
