Government contractor-Composition scheme

I am a Govt contractor and received payment from Govt Department after GST TDS deduction. Can I otp for composition scheme ??

Please guide
Replies (4)
Quick Summary
This discussion clarifies whether government contractors who have had GST TDS deducted can opt for the composition scheme. Two main composition schemes are available under GST law. The first, under Section 10(1), has a turnover limit of ₹1.5 crore but restricts service supply to 10% of turnover or ₹5 lakh. The second, under Section 10(2A), has a turnover limit of ₹50 lakh (or ₹60 lakh as per some interpretations) and allows for the supply of goods or services, but requires paying 6% GST on turnover without input tax credit and prohibits interstate supplies.

Composition scheme no gst input tax
GST TDS get reflected in the Cash Ledger of Receipent. So you can use your cash ledger for the payment of output tax.

Now comes to your Query :
There are 2 scheme available in Law under Composition Levy
1st scheme:
As per Section 10 (1) :
Aggregate Turnover must below 1.5 crore & can supply of Services not exceeding 10% of Turnover or 5 lac whichever is higher. So don't think that you can opt for this scheme.
2nd Scheme:
As per Section 10(2A) :
Aggregate Turnover must below 50lac & can supply goods or services or both.
So if your Turnover is well below 50 lac you can opt for this scheme.
limitation : deposit GST 6% on Turnover without ITC & cannot supply Interstate.

Note : Need chk the Govt agreement Contract
Sec 10(2A) aggregate turnover must be below 60 lacs.

ITS 50 LAC KINDLY REFER THE SECTION ONCE AGAIN. SUB-SECTION (2A) WAS INSERTED BY NOTIFICATION 2/2019 CT (RATE) . SO CAN ALSO REFER THE SAID NOTIFICATION

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