Business registered under Composition Scheme cannot collect GST on sales made to its customers. It cannot claim the input tax credit of GST paid on purchases of goods and services. A composite dealer needs to pay GST to the government at a prescribed rate determined on the nature of its business.
Here are the prescribed rates for different categories of registered suppliers under Composition Scheme:
|Nature of Business||Item Type||Total||CGST||SGST|
|Restaurants not serving alcohol||Services||5%||2.5%||2.5%|
|Other Services (effective from 1st April 2019)||Services||6%||3%||3%|
Read more - What is the tax rate under Composition Scheme?