Steel Manufacturer can go for composition scheme for job work

Hii

Job work are deemed as services under GST Regime thus you cant take composition for doing job work, if possible split your business in 2 Name's and avail composition under manufacturing business and done job work as non registered person.

You can go for compostion scheme but please note that :

1. You can not make inter sate sale

2. You can not take credit on tax paid on input paid.

3. Under GST regime, ‘aggregate turnover’ includes the aggregate value of-

all taxable supplies,

exempt supplies,

exports of goods and/or services and

inter-State supplies of a person having the same PAN,

all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.

Hello,

It will be of no use to answer your question unless we understand your business model as to who are your target customers ?

Are they end consumers or business houses/ traders.

Opt for composition scheme only if your major sales are to end consumers and not otherwise.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Hi

Composition scheme can be opted for only by the manufacturers and not by the job workers. To decide whether composition should be opted or not, you should analyse the following:

1. Whether the two business lines can be separated under different entities.

2. Whether you'll have any benefit by opting for composition scheme depending upon your input tax credits and output taxes.