| Question And Answer | |
|---|---|
| Subject: | about composition scheme for manufacturer |
| Category: | GST |
| Querist: | amsco |
| Answered by: | Advocate C.B.Thakar |
| Tags: | composition scheme for manufacturer, GST COMPOSITION SCHEME |
| Date: | April 2, 2024 |
whether a pan masala and tobacco trader who assemble pan on its own then does it amounts to manufacturing of pan masala or it is amounts to trading of pan masala
The definition of ‘manufacture’ in section 2(72) is as under:
“(72)- ’manufacture’ means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term ‘manufacturer’ shall be construed accordingly;”
Normally the pan vendor do not sale plain pan. He will apply chuna, katha (catechu), betel nut, other ingredients to make edible pan masala and supply it.
As per above definition there is definitely new product made out of different inputs. Therefore, it is manufacturing activity and composition scheme for manufacturer will apply.