CS Executive · Tax Laws and Practice · Levy and Collection of GST
Mehta Traders, a registered trader of goods (not a manufacturer), opted for composition under section 10(1). Its turnover in the State for the quarter was ₹20,00,000, all from taxable intra-State supplies. Applying the maximum rate permitted by section 10(1) for 'other suppliers', what is the maximum composition tax payable?
The maximum composition tax is ₹10,000. For suppliers other than manufacturers and restaurant-type suppliers, section 10(1)(c) allows a rate not exceeding half per cent of turnover in State, and half per cent of ₹20,00,000 equals ₹10,000.
- A₹10,000Correct
- B₹20,000
- C₹50,000
- D₹5,000
Explanation
Section 10(1)(c) caps the rate at half per cent of turnover in State for other suppliers. 0.5% of ₹20,00,000 = ₹10,000. The ₹20,000 option wrongly uses 1%, the manufacturer rate, and ₹50,000 uses 2.5%.
Did you get it right without looking?
One question tells you little. A timed set on Levy and Collection of GST shows your real accuracy, how long you take and where you lose marks.
More Levy and Collection of GST questions
- A foreign electronic commerce operator has no physical presence in the taxable territory, but a Mumbai firm represents it for some purpose i…
- Sharma Enterprises is unregistered and supplies a service under a category notified for reverse charge. What does section 32 of the CGST Act…
- Under the CGST Act, 2017, which of the following intra-State supplies is expressly excluded from the levy of central tax under the charging …
- Under the IGST Act, 2017, the levy of integrated tax on inter-State supply of motor spirit (petrol) takes effect:
- A non-resident e-commerce operator has no physical presence in the taxable territory and no representative there. It supplies notified servi…
- Mehta Enterprises, a composition dealer of goods, had turnover in the State of Rs 40 lakh in the preceding financial year, so the second pro…