1% GST leviable on composition dealers of sweets & namkeens: AAR

Case Details: Authority for Advance Rulings, Karnataka Chikkaveeranna Sweet Stall., In re - [2022] 136 taxmann.com 92 (AAR - KARNATAKA)

Judiciary and Counsel Details

• • Dr. M.P. Ravi Prasad and T. Kiran Reddy, Member

Facts of the Case

The applicant was running sweet stall and was engaged in manufacturing of sweets and doing counter sale on retail basis. It filed an application for advance ruling to determine applicable rate of GST for the manufacturing of sweet and namkeens and selling the goods over the counter by Composition Dealer.

AAR Held

The Authority for Advance Ruling observed that applicant was a composition taxpayer and engaged in the manufacture of sweets and doing counter sales. As per Notification No. 8/2017-Central Tax, dated June 27th, 2017, an eligible registered manufacturer may opt to pay GST at 1% of turnover in state. Since, the applicant would be manufacturing goods and it would be only doing the counter sales, it can opt to pay GST at one per cent, of the turnover subject to the conditions mentioned in the Notification No. 8/2017 (Central Tax) dated June 27th, 2017.