Composite dealer limit for 1.5cr or 2cr

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This discussion clarifies the Goods and Services Tax (GST) composite scheme turnover limits for businesses dealing in both goods and services. It explains that a taxpayer registered under the regular scheme can convert to the composite scheme, but the overall turnover threshold is either Rs 1.5 crore or Rs 50 lakh, not a combined Rs 2 crore. The limits for goods and services are distinct within the composite scheme, with specific rules for service provision based on turnover or a fixed amount.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

14 August 2020 A taxpayer at present gst regular scheme registered under gst act.tax payer both type of goods and services business running.if a tax payer gst regular scheme conversion( change) to composite scheme registration
Doubt:
Tax payer for selling goods turnover limit rs:1.5cr pay tax @ 1%and for services turnover Limit rs:50 lacs pay tax @6% total composite scheme dealer turnover threshold limit rs1.5cr or 2 cr applicable in gst act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 August 2020 Turnover limit applicable 1.50cr.
Composition dealer can provide services to an extent of 10% of turnover or Rs 5 lakh, whichever is higher, if they are a manufacturer or trader.

Lekhraj sood

Lekhraj sood (Expert)

15 August 2020 These are two composition scheme. One of Rs.1.5 cr limit and the other Rs.50 lakhs. You cannot opt for both schemes simultaneously. So your t/o limit will be either 1.5 cr. or 50 lakhs but not Rs. 2 crores.

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