TaxTMI 
TaxTMI 
Composition Scheme under Section 10(2A) of the CGST Act
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....omposition Scheme under Section 10(2A) of the CGST Act <br> Query (Issue) Started By: - Fahiyaz Ahmmed Dated:- 15-7-2025 Goods and Services Tax - GST <br> Got 9 Replies <br> GST<br> <br> 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,....
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.... 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 --Reply By: Sadanand Bulbule The Reply: Considering the facts of your case, refer Notificat....
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....ion No. 2/2019-Central Tax (Rate) dated 7th March, 2019 for availing composition scheme under Section 10(2A) of the CGST Act, 2017. --- Sub-Reply By: Fahiyaz Ahmmed The Sub-Reply: THANK YOU SIR --Reply By: Shilpi Jain The Reply: An important condition to be able to opt for this composition scheme is that there should not be any inter-State supply i.e. where your location and location of....
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.... customer are in different States --Reply By: KASTURI SETHI The Reply: Dear Querist, Explore the possibility of your service falling in the category of OIDAR. See Boards Flyer No.43 dated 1.1.18 --Reply By: Fahiyaz Ahmmed The Reply: A heartfelt thank you to all the experts here for sharing your knowledge --Reply By: YAGAY andSUN The Reply: The assessee is engaged in providing online....
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.... digital matchmaking services through a mobile application and collects subscription fees from users via Razorpay, a payment gateway. The services are rendered directly to users, without the involvement of any e-commerce operator liable to collect tax at source under Section 52 of the CGST Act, 2017. The aggregate turnover remains below ?50 lakhs in the preceding financial year. Section 10(2A) of ....
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....the CGST Act, 2017, introduced via the Finance (No. 2) Act, 2019 and operational from 01.04.2020, permits a registered person engaged exclusively in the supply of services to opt for the composition scheme, provided their aggregate turnover does not exceed ?50 lakhs. The applicable tax rate is 6% (3% CGST + 3% SGST), as notified under Notification No. 2/2019-Central Tax (Rate) dated 07.03.2019. Th....
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....e said notification allows such service providers to pay tax under the composition route, subject to the condition that they are not engaged in making supplies through an e-commerce operator required to collect tax under Section 52. Since Razorpay is a payment aggregator and not an e-commerce operator as defined in the Act, the restriction under Section 10(2A) is not attracted. Further, the applic....
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....ability of OIDAR (Online Information and Database Access or Retrieval) services under Section 2(17) of the IGST Act, 2017 must be examined. As per CBIC Flyer No. 43 dated 01.01.2018, OIDAR services typically include online delivery of digital content with minimal human intervention, such as cloud services or data access from a foreign supplier. The assessee operates domestically and provides inter....
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....active services directly to Indian users. Hence, the service does not squarely fall within the scope of OIDAR, which primarily applies to cross-border B2C transactions. Conclusion: The assessee, being a domestic supplier of digital matchmaking services with turnover below ?50 lakhs, not supplying through an e-commerce operator under Section 52 and not falling within the scope of OIDAR, is eligible....
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.... to opt for the composition scheme under Section 10(2A) of the CGST Act, 2017, read with Notification No. 2/2019-Central Tax (Rate) dated 07.03.2019. --- Sub-Reply By: Fahiyaz Ahmmed The Sub-Reply: but there is a high possibility that customers from other states may also subscribe to the services once the app is online. Will this violate the basic condition of the scheme, particularly the restr....
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....iction on inter-state supply --Reply By: Sadanand Bulbule The Reply: Dear Sir A taxpayer wishing to enjoy the benefits of composition levy of tax cannot push its compound walls to suit his desires. Walls are immovable, not flexible. --- Sub-Reply By: Fahiyaz Ahmmed The Sub-Reply: Thank you Sir I understand now the conditions under the Composition Scheme are fixed and must be followed stric....
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....tly. Your explanation using the compound wall analogy made it very clear. Grateful for your guidance <br>***<br> Discussion Forum - Knowledge Sharing....