Answer

1. F

   Facts

   Traders under composition pay 1 percent (0.5 percent CGST and 0.5 percent SGST) on turnover of taxable goods in the State. Exempt items are left out for traders.

2. P

   Provisions and law

   • Rule 7, CGST Rules 2017Composition rates: 1 percent for manufacturers and traders, 5 percent for restaurants (each split equally between CGST and SGST).
   • Sec 10(1), CGST Act 2017A registered person with aggregate turnover up to the notified limit (₹1.5 crore, lower in special category States) may opt to pay tax at a fixed rate on turnover.
3. A

   Analysis

   If ₹12 lakh includes ₹2 lakh of exempt items like fresh vegetables or loose grains, tax is 1 percent of ₹10 lakh, which is ₹10,000: ₹5,000 CGST and ₹5,000 SGST. Keep the exempt and taxable sales separate in your daily record. For manufacturers, the 1 percent applies on turnover in the State. Check the latest rule wording for your category.

4. C

   Conclusion

   1. 1Separate taxable and exempt sales for the quarter.
   2. 2Apply 1 percent on taxable sales.
   3. 3Split equally into CGST and SGST.
   4. 4Enter in CMP-08 and pay in cash.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.