1% GST payable on a Composition taxpayer engaged in the manufacture of Sweet, Namkins, doing only over-the-counter sales: AAR
The Karnataka Advance Ruling Authority (AAR) estimated that 1% GST was payable on a Composition taxpayer engaged in the manufacture of Sweet, Namkins, making only over-the-counter sales.
The plaintiff, Chikkaveeranna Sweet Stall, testified that he operated a candy stand and engaged in candy manufacturing and retail over the counter sales. He also states that he is registered as a “compounding taxpayer” under the GST and sells the goods over the counter and has no restaurant or hotel facilities.
The applicant stated that he currently pays a 1% composition tax on total turnover, as he is a confectionery manufacturer and does not supply any products for human consumption at the location of the shop.
The plaintiff requested the advance ruling with respect to the compounding taxpayers what is the rate of GST applicable to the manufacture of candies and namkeens and to the sale of counter products having no restaurant facility or d hotel or not part of it and not giving for human consumption on the premises of the store.
The coram of Dr MPRavi Prasad and T. Kiran Reddy ruled that the applicable GST rate for a compounding taxpayer who is engaged in the manufacture of candies and namkeens and who only makes over-the-counter sales, is one percent (0.5% COST and 0.5% SGST) subject to the condition mentioned in Notification N ° 8/2017-Impôt Central of 27.06.2017 and the subsequently amended notifications.
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