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Tax under section 10 or notification 2/2019

07 February 2020

I am into a business of supplying goods & services both. My turnover of previous FY consisted of Rs. 42 lacs by supplying goods and Rs. 15 lacs from supplying services. Can I opt for paying tax under section 10 (Composition) or paying tax at concessional rate @ 6% (notification 2/2019)?

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4 Replies

Roshni (Studwnt) (1141 Points)
Replied 07 February 2020

As supply of services is exceeding 10% or 5 lakh limit. you should go for 2/2019

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Riya Jain (8 Points)
Replied 07 February 2020

But 2/2019 is upto 50 Lacs only.... & I think its only for service provider & not for supplier of goods & service both

Roshni (Studwnt) (1141 Points)
Replied 07 February 2020

Yup in this case it exceeds the limit. but as far as I read no where it's written we cannot supply goods

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 08 February 2020

No you cannot opt for Composition scheme.
As per the 2nd Proviso under section 10(1) (c) , may supply Services of value not exceeding 10% of Aggregate turnover in preceding FY or 5 lac whichever is Higher , so if in current Fy or when you opt for the said scheme your supply of Service turnover shall not be more then 5 lac , else need to furnish CMP 04 (withdrawal from Composition).

As per sub clause (2A) of Section 10 , inserted by Finance (No.2) Act 2019 , the registered person not eligible to opt for scheme whose turnover in preceding FY more then 50 lac , hence You can cannot opt for the same .

(Note : Notification 2/2019 CT (r) prescribe supply of Goods or Services or both)

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