Composition Scheme under Section 10(2A) of the CGST Act

[Fahiyaz Ahmmed]

My friend has developed a dating application that offers digital matchmaking services and charges users a subscription fee. Payments are collected through Razorpay (a payment gateway). There is no supply of goods, and the services are provided directly to users without involving any e-commerce operator required to collect TCS under Section 52 of the CGST Act. The annual turnover is below ?50 lakhs. Under these conditions, is my friend eligible to opt for the Composition Scheme under Section 10(2A) of the CGST Act

AI Summary

Dating app with subscription fees eligible for Composition Scheme under Section 10(2A) with 6% tax rate A taxpayer inquired about eligibility for the Composition Scheme under Section 10(2A) of the CGST Act for a dating application providing digital matchmaking services with subscription fees collected through a payment gateway. The annual turnover is below 50 lakhs with no goods supply or e-commerce operator involvement under Section 52. Legal experts confirmed eligibility under Notification No. 2/2019-Central Tax (Rate) dated March 7, 2019, noting the 6% tax rate (3% CGST + 3% SGST). However, they emphasized that inter-state supply restrictions apply, meaning customers and service provider must be in the same state. The service was determined not to fall under OIDAR provisions as it involves domestic supply with human intervention rather than cross-border automated digital content delivery.