We are traders of Cold Drinks (Pepsi, sprite Coca cola). Are we eligible to apply registration under composition scheme? Will we have to pay Cess under composition scheme? Request to guide.
Reply
Yes, a trader of cold drinks can opt composition scheme. Further as per proviso of section 8(1) of GST (compensation to states) Act, 2017, no such cess shall be leviable on supplies made by a taxable person who has decided to opt for composition levy under section 10 (composition scheme taxpayers) of the Central Goods and Services Tax Act.
Therefore, no need to pay compensation cess, if taxpayer is a composition dealer.
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