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A composition taxpayer (manufacturer) under Sec 10(1) is liable to pay tax at the aggregate rate of:
A2% (CGST 1% + SGST 1%)
B1% (CGST 0.5% + SGST 0.5%)
C5% (CGST 2.5% + SGST 2.5%)
D6% (CGST 3% + SGST 3%)
Answer & Solution
Correct answer: B. 1% (CGST 0.5% + SGST 0.5%)
1. Sec 10(1)(a) prescribes composition rate for manufacturers.
2. Notification 8/2017-CT fixes 0.5% CGST + 0.5% SGST = 1% aggregate.
3. Restaurant (10(1)(b)) is 2.5+2.5=5%; trader (10(1)(c)) is 0.5+0.5=1% on taxable turnover.
_Source: ICAI BoS CA Final Paper 8, Ch 3 "Levy and Collection of Tax", §Sec 10(1)(a)_
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