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Composition scheme

Harshit Acharya (404 Points)

07 May 2020

Turnover limit for composition is 1.5 crore or 50 lakhs?

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4 Replies

CA KAMAL MADAN (CHARTERED ACCOUNTANT) (147 Points)
Replied 07 May 2020

For traders its 1.5 cr and for service provider its 50 lacs

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Shivam RC (Student) (23683 Points)
Replied 07 May 2020

The Turnover Threshold limit to opt for Composition Scheme under Section 10 of the CGST Act 2017 is Rs. 1.5 crore.

However in 2019, the benefit of Composition Scheme was also extended to the "SERVICE PROVIDERS" having Aggregate Turnover upto Rs. "50 lakhs" and pay GST @ 6% ( 3% CGST + 3% SGST ) quarterly.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 08 May 2020

As per Section 10 it's 1.5 Crore (engaged in supply of goods & can supply Services not exceeding value of 10% of turnover in the preceding FY or 5lac whichever is higher.

It's 50 lac in term of sub Section (2A) of Section 10, inserted by Notification 2/2019 CT (R) , who can supply Goods or services or both .