Our client has exempt turnover of ₹ 30 lakhs in FY 2021-22 by way of rent from residential property and taxable turnover of ₹ 5 lakhs by way of management consultancy services.
As per our understanding he is required to take registration.
Would he be eligible for the composition Scheme and if so whether composition tax is to be paid on ,
Client with Mixed Turnover Questions GST Composition Scheme Eligibility Under Sections 10(2)(b) and 10(2A) of CGST Act. A client with an exempt turnover of 30 lakhs from residential property rent and a taxable turnover of 5 lakhs from management consultancy services is questioning eligibility for the GST composition scheme. Responses indicate that the client is generally not eligible under Section 10(2)(b) of the CGST Act, as exempt turnover is involved. However, under Section 10(2A), the client may opt for the scheme, potentially paying 6% GST on the taxable turnover, but not on the exempt turnover. Legal interpretations and cost-benefit analyses are recommended before proceeding. (AI Summary)
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