Benefit of composition scheme is not available in the business of Pan Shop.
Composition scheme— Section 10 of CGST Act— In the instant case, applicant is proposed to open a new business venture of PAN SHOP. The Business model of PAN SHOP would be selling Pan Masala, Tobacco Products, aerated Drinks etc.
Question raised before the authority is as follows—
1. Whether we are eligible to be in the composition scheme as our turnover is much less than 1.5 crores?
2. Which 11SN codes that needs to be obtained at the time of obtaining registration as any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 of if the person engaged Pan Masala and Tobacco products Trading under the composition scheme?
3. What will be applicable tax rate on the supply of such Pan Masala or Tobacco products as any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 in the Composition scheme?
4. Whether Tax rate prescribed under Notification No. 50/2020 is applicable on any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 is applicable on the above-mentioned class of assessee who are engaged in Trading of Pan Masala or Tobacco Products?
In a Pan shop the seller also generally makes a product akin to Gutka themselves by mixing of betel nuts, lime, kattha and tobacco containing or not containing other ingredients are sold which amounts to manufacture of Gutka.
The preparation of Gutka at the Pan Shop for sale is covered in the Second Proviso of Notification No. 14/2019-CT. In the Table given in Notification No. 14/2019-CT both Pan Masala and goods covered under Chapter 24 are listed as goods for which composition cannot be obtained.
Held that— In respect of Question regarding availability of the benefit of the Composition Scheme. for the reasons stated above, it is ruled that the benefit of the Composition Scheme u/s 10 of the GST Act. 2017 shall not be available to the applicant.
In respect of the other questions raised. since they have been withdrawn by the applicant, no ruling is being provided in respect of those questions.
Benefit of composition scheme is not available in the business of Pan Shop.
Composition scheme— Section 10 of CGST Act— In the instant case, applicant is proposed to open a new business venture of PAN SHOP. The Business model of PAN SHOP would be selling Pan Masala, Tobacco Products, aerated Drinks etc.
Question raised before the authority is as follows—
1. Whether we are eligible to be in the composition scheme as our turnover is much less than 1.5 crores?
2. Which 11SN codes that needs to be obtained at the time of obtaining registration as any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 of if the person engaged Pan Masala and Tobacco products Trading under the composition scheme?
3. What will be applicable tax rate on the supply of such Pan Masala or Tobacco products as any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 in the Composition scheme?
4. Whether Tax rate prescribed under Notification No. 50/2020 is applicable on any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 is applicable on the above-mentioned class of assessee who are engaged in Trading of Pan Masala or Tobacco Products?
In a Pan shop the seller also generally makes a product akin to Gutka themselves by mixing of betel nuts, lime, kattha and tobacco containing or not containing other ingredients are sold which amounts to manufacture of Gutka.
The preparation of Gutka at the Pan Shop for sale is covered in the Second Proviso of Notification No. 14/2019-CT. In the Table given in Notification No. 14/2019-CT both Pan Masala and goods covered under Chapter 24 are listed as goods for which composition cannot be obtained.
Held that— In respect of Question regarding availability of the benefit of the Composition Scheme. for the reasons stated above, it is ruled that the benefit of the Composition Scheme u/s 10 of the GST Act. 2017 shall not be available to the applicant.
In respect of the other questions raised. since they have been withdrawn by the applicant, no ruling is being provided in respect of those questions.