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Government contractor-Composition scheme

chandan Tiwari (Student CA IPC / IPCC) (214 Points)

24 March 2023

I am a Govt contractor and received payment from Govt Department after GST TDS deduction. Can I otp for composition scheme ??

Please guide

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4 Replies

sabyasachi mukherjee (27539 Points)
Replied 24 March 2023

Composition scheme no gst input tax

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 26 March 2023

GST TDS get reflected in the Cash Ledger of Receipent. So you can use your cash ledger for the payment of output tax.

Now comes to your Query :
There are 2 scheme available in Law under Composition Levy
1st scheme:
As per Section 10 (1) :
Aggregate Turnover must below 1.5 crore & can supply of Services not exceeding 10% of Turnover or 5 lac whichever is higher. So don't think that you can opt for this scheme.
2nd Scheme:
As per Section 10(2A) :
Aggregate Turnover must below 50lac & can supply goods or services or both.
So if your Turnover is well below 50 lac you can opt for this scheme.
limitation : deposit GST 6% on Turnover without ITC & cannot supply Interstate.

Note : Need chk the Govt agreement Contract

sabyasachi mukherjee (27539 Points)
Replied 27 March 2023

Sec 10(2A) aggregate turnover must be below 60 lacs.

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 27 March 2023

ITS 50 LAC KINDLY REFER THE SECTION ONCE AGAIN. SUB-SECTION (2A) WAS INSERTED BY NOTIFICATION 2/2019 CT (RATE) . SO CAN ALSO REFER THE SAID NOTIFICATION