Yash started the business of supplying shoes in the State of Karnataka from 1st April, 2022. He makes only intra-State supplies. His turnover for April-June quarter was ₹20 lakh and for July-September quarter was ₹110 la

Type of dealer Type of dealer Composition Tax Rate Manufacturers, other than manufacturers of notified goods 1% (0.5% CGST + 0.5% SGST/UTGST) of the turnover in the State/ Union territory. Trader 1% (0.5% CGST + 0.5% SGST/UTGST) of turnover of taxable supplies of goods & services in the State / Union territory. Explanation 2 to section 10 Central Goods & Services Tax Act, 2017 provides that for the purposes of determining the tax payable by a person under this section, the expression "turnover in State or turnover in Union territory" shall not include the value of following supplies, namely :- supplies from the first day of April of a financial year upto the date when such person becomes liable for registration under this Act; and exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount Tax payable by Yash under composition scheme is as follows: (i) In case where Yash is a manufacturer: Tax payable by him under composition scheme will be on aggregate turnover. CGST = ₹110 lakh x 0.5% = ₹55,000 SGST = ₹110 lakh x 0.5% = ₹55,000 (ii) In case where Yash is a trader: The answer would be no different as the legal position for manufacturers and traders is same for the purpose of composition scheme under section 10 of the Central Goods and Services Tax Act, 2017. Tax payable by him under composition scheme will be as follows only on taxable turnover. CGST = ₹110 lakh x 75% (as 25% of turnover is exempt) x 0.5% = ₹82.50 lakh x 0.5% = ₹41,250 SGST = ₹110 lakh x 75% (as 25% of turnover is exempt) x 0.5% = ₹82.50 lakh x 0.5% = ₹41,250