SECTION 10(2) - Conditions needs to be fulfilled for previous financial year also?

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....ECTION 10(2) - Conditions needs to be fulfilled for previous financial year also?<br> Query (Issue) Started By: - CHINTAPALLI MANIKANTA Dated:- 20-1-2021 Last Reply Date:- 21-1-2021 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>Sir, do we need to fulfill the conditions mentioned in 10(2) for previous financial year also or only for current financial year i.e. after opting the composition....

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.... scheme. I read an article regarding this topic, that is why I&#39;m posting this query? https://www.taxmanagementindia.com/visitor/tmi_faq_details.asp?ID=295&discuss=Yes Reply By Shilpi Jain: The Reply: I think you have misunderstood the post. There is no such conclusion there. Also the post mentioning that there should not have been any inter-State supplies in the previous FY (where no compo....

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....sition scheme is availed) seems to be unfounded in the law. Reply By KASTURI SETHI: The Reply: Conditions mentioned in Section 10(2) of CGST Act are to be followed after opting for Composition scheme. How these conditions can be correlated to the preceding financial year when you were not under Composition Scheme ? Reply By CHINTAPALLI MANIKANTA: The Reply: Thanks you Shilpi Jain and KASTURI S....

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....ETHI for your reply Then why it is said that &quot;The registered person shall be eligible to OPT if he is not engaged in the following supplies&quot;.It does not explicitly said he is disqualified if engaged in these supply after opting the composition scheme. Section 10(2) says ELIGIBLE TO OPT - The language seems talking about past rather than future i.e. while opting we check Aggregate Turno....

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....ver in previous year. The focus is on the word &quot;OPT&quot;. Reply By KASTURI SETHI: The Reply: Dear Querist, I respect difference of opinions. But here do not drag past into present forcibily. Reply By CHINTAPALLI MANIKANTA: The Reply: Ok Sir Reply By KASTURI SETHI: The Reply: See Rule 5 (1)(e) of CGST Rules and also read Notification No.8/17-CT dated 28.6.17 for preceding year as condit....

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....ion. Threshold limit is also for preceding year. This makes it clear that all other conditions mentioned in Section 10(2) are for current year after opting for composition scheme under Section 10.<br> Discussion Forum - Knowledge Sharing ....