Jai Hind Ltd. a manufacturing company in Delhi has opted for composition scheme furnishes you the following information for the financial year 2022-23. You are required to compute the Composition tax and total tax liabil

Computation of Taxable Turnover and Tax Liability of Jai Hind Ltd. (Composition Scheme): Eligibility for Composition Scheme: A manufacturer can opt for the composition scheme if their aggregate turnover in the preceding financial year did not exceed ₹1.5 crore (₹75 lakhs for special category states). Jai Hind Ltd.'s aggregate turnover in FY 2021-22 was ₹1,20,00,000, which is within the limit. A composition dealer can also supply services up to 10% of the turnover in the preceding financial year or ₹5 lakhs, whichever is higher. Here, 10% of ₹1,20,00,000 is ₹12,00,000. Jai Hind Ltd.'s service supply is ₹6,50,000, which is within this limit. Hence, Jai Hind Ltd. is eligible for the composition levy. Composition Tax Rate: For manufacturers, the composition tax rate is 1% (0.5% CGST + 0.5% SGST) of the turnover in the state or union territory. S. No. Particulars Amount (₹) A Supplies made under forward charge (Intra-state supply of goods) 75,00,000 B Value of supplies made on which tax is payable on reverse charge basis (not to be included in turnover for composition tax) -- C Intra-state supply of exempt goods (not to be included in turnover for composition tax) -- D Intra-state supply of services 6,50,000 E Taxable Turnover for Composition Levy (A+D) 81,50,000 F Total composition tax - CGST 0.5% and SGST 0.5% on (E) (₹81,50,000 x 0.5% CGST) + (₹81,50,000 x 0.5% SGST) 81,500 (CGST) + 81,500 (SGST) = 1,63,000 Tax Payable under reverse charge: G Value of Inward Supplies on which tax payable under RCM 5,00,000 H Tax payable under RCM - GST rate @ 18% on (G) (₹5,00,000 x 18%) 90,000 Total Tax Liability (F+H) 1,63,000 + 90,000 = 2,53,000