COMPOSITION

[CA.ANCHAL RASTOGI]

A Individual having rental from commercial property of ₹ 11 Lacs and turnover from a B to C trading business of ₹ 40 Lacs. May he opt composition for only trading business ? all other condition necessary for composition are OK.

[KASTURI SETHI]

Cannot opt for composition scheme. You will have to conform to all the parameters laid down under GST Acts.

[Preeti Sharma]

Hello CA. Anchal Rastogi,

As per my knowledge, Composition scheme in GST is a PAN based scheme. All taxable persons covered by the same PAN shall be under composition across India. Any intimation of option to avail composition scheme in respect of any place of business in any State or UT shall be deemed to be an intimation in respect of all other places of business registered on the same PAN.

Therefore, assessee cannot opt for composition scheme for only 1 business, he has to opt it for all businesses as he has having the same PAN.

[PAWAN KUMAR]

Since, composition scheme is not applicable for supplier of service. so as per your query if one business is supplier of service and other is trading, for trading composition scheme cannot be availed because as per the condition all the business verticals in a state should be opted to composition. this is contrary that one is out of composition i.e. supplier of service and other being opted for composition, hence composition scheme will not be admissible as per my view.

[KASTURI SETHI]

Renting service is not eligible for composition scheme. Only one service i.e. staurant service is eligible for composition scheme and the bar of inter-state sale also makes the assessee ineligible for composition scheme. Hence no question of whole India.

[DR.MARIAPPAN GOVINDARAJAN]

As per the views of experts you cannot opt for composition scheme.

[Ramesh Kothari]

Only trading activity allow in composition scheme

Tresh told limit 75 LAKH

 

AI Summary

Composition scheme eligibility: cannot be applied selectively when same PAN covers ineligible services and trading businesses. Composition scheme option is PAN based and applies to all places of business registered on the same PAN; a taxpayer carrying both trading and ineligible service activities (such as commercial property renting) under the same PAN cannot elect composition only for the trading business, because excluded services and inter state supply considerations render the PAN ineligible for composition.