Answer

GST

Composition tax rates in GSTR-4

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  1. Facts

    Composition rates are 1 percent for traders and manufacturers, 5 percent for restaurants, and 6 percent for service providers under Sec 10(2A). Each is split equally into CGST and SGST.

  2. Provisions and law

    • Sec 10, CGST Act 2017Composition levy: turnover limits, rates, conditions and no ITC

  3. Analysis

    Sec 10 sets these rates. For traders, tax is on turnover of taxable supplies, so exempt items are generally left out of the taxable base. Example: a composition trader with ₹50 lakh taxable sales pays 1 percent, ₹50,000; a composition tutor with ₹30 lakh pays 6 percent, ₹1,80,000. Use the same rate as in your CMP-08s.

  4. Conclusion

    1. Check which composition category you are in.
    2. Apply the right rate to taxable turnover.
    3. Match with CMP-08 payments.
    4. Enter rate-wise in Table 6.

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GSTR-4 annual return for composition dealers

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