In a welcome move, the composition rate U/s 10 of CGST Act for Manufacturers is reduced from 2% to 1% to equate it with rate for traders.
The calculation of composition levy only on taxable turnover and not on total turnover. So no tax on exempt supply.
The changes will take effect from 1st January, 2018.
Credit: Manoj Agarwal
It is applicable from 1st January. New year gift from government. Manufacturers have good days.
Make in India will have some push now.
Indian laws are still not suitable for manufacturers.
It is double benefit.
One tax on taxable supplies only and now they can at par with traders. Many small scale manufacturers directly compete with traders and this will give them equal opportunities.
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