The exact rates of composition are yet to be prescribed, however the maximum rates are classified under three categories:
• Manufacturer: Maximum one per cent of the turnover in State or turnover in Union territory.
• Specific Service providers: Only such service providers who are supplier of food related services (restaurant services) specified under paragraph 6(b) of Schedule II (supply, by way of or as part of any service or in any other manner whatsoever of goods, being food or any other article for human consumption of any drink (other than alcoholic liquor for human consumption) which are kept under composition levy at a maximum two and a half per cent.
• Other suppliers: Half per cent of the turnover in State or turnover in Union territory.
Point to remember is that the above rates are provided in CGST Bill, therefore the actual pay out of composition rate will be double of the above rates i.e. either 1%, 2% or 5% bifurcated into CGST and SGST/UTGST.
Further note that, as a composite dealer cannot collect tax from the recipient of goods or specified services and consequently cannot issue Tax Invoice. A Bill of Supply needs to will be issued by a composite dealer.