M/s Sagar Electronics Private Ltd., located at Haridwar, Uttarakhand and registered under the Composition Scheme furnishes the following break up of its total value of supplies including inward supplies taxed under rever

The composite tax liability of M/s Sagar Electronics Pvt. Ltd. shall be as under: 1. Computation of Aggregate Turnover under composition for financial year 2023-2024 S. No Particulars Amount (In ₹) 1 Intra state supply of MCB Panels chargeable to 1% GST 42,00,000 2 Intra state supply of repair of Conductors & Chips chargeable to 6% GST Note: a composition dealer can supply services to an extent of 10% of turnover in the preceding financial year or ₹ 5 lakhs, whichever is higher. Thus, maximum supply of service allowed is 10% of ₹ 72,50,000 or ₹ 500,000 as higher = ₹ 7,25,000 6,50,000 3 Inward supply on which tax payable under RCM (GST Rate 12%) (Excluded for calculation of aggregate turnover) Nil 4 Intra state supply wholly exempt under section 11 of CGST Act 5,78,000 5 Export of goods to SEZ at Nil rated 8,36,000 Total Aggregate Turnover 62,64,000 2. Computation of tax liability for financial year 2023-2024: Supply of Manufacturing (42,00,000 * 1%) = ₹ 42,000 Repair Services of conductor & chips (6,50,000 * 6%): ₹ 39,000 Intra-state supply which are wholly exempt - Nil Export of goods to SEZ at Nil Rate Total tax liability = ₹ 81,000 3. Tax payable under Reverse Charge Basis: Sr. No. Particulars Amount (In ₹) 1 Inward supplies on which tax payable under RCM 4,15,000 2 Rate of GST 12% 3 Tax payable under RCM 49,800 Therefore, total tax payable by M/s Sagar Electronics Pvt. Ltd. is ₹ 81,000 + ₹ 49,800 = ₹ 1,30,800 Note: As per section 10(2) of the CGST Act, 2017, a registered person is eligible to opt for composition levy of section 10(1) only if inter-alia he is not engaged in inter-state outward supply of goods/services. In given case, the registered person is engaged in Export of goods to SEZ which is an Inter-state supply and therefore, M/s Sagar Electronics Private Limited is NOT ELIGIBLE FOR COMPOSITION LEVY in Financial Year 2023-24. Accordingly, tax is payable as per normal rate. (The calculation above uses composition rates, which contradicts the conclusion of ineligibility. If not eligible, normal GST rates would apply to all taxable supplies.)