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Composition options

mukesh chaudhary (2 Points)

03 December 2020

can opt the composition scheme by the works Contractor (taxpayer)

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Shivam RC (Student) (23683 Points)
Replied 03 December 2020

As per Notification No. 2/2019 - Central Tax ( Rate ), dated 07th March 2019, W.e.f. 01/04/2019, Service Providers having Aggregate Turnover upto Rs. 50 lakhs would be able to opt for Composition Scheme U/s 10 of the CGST Act 2017 and are required to pay GST @ 6% ( 3% CGST + 3% SGST ) out of their own pocket.

Hence if your Aggregate Turnover is upto Rs. 50 lakhs, then you are eligible to opt for Composition Scheme.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 07 December 2020

Yes as per Sub clause 2A under Section 10 , you can opt for composition scheme with following conditions to be fulfilled:
1. Your aggregate turnover in Preceding year is not more then 50lac
2. Not Engaged supply of non GST goods or services.

Note : Required to pay GST @ 6% on turnover