Turnover calculation for tax

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For a trader of goods, the threshold limit for registration is Rs.40L, for service providers it is 20L.

Q1
I have turnover of 50L rs. This year , i crossed threshold of 40L for goods, gst is @ 18%, then how much GST should I pay?
A) 50L * 18%
B) (50-40)L * 18%


Q2
I have turnover of 100L rs. I want to opt for composition scheme as turnover is less than 150L, where tax rate is 1% (for manufacturer) then how much GST should I pay??
A) 100L * 1%
B) (100-40)L * 1%

Q3
I have turnover of 45L rs. I want to pay tax at 6% under notification 2/2019 CT (R) (similar to composition scheme for service providers that was newly introduced where 50L is limit) then how much GST should I pay??
A) 45L * 6%
B) (45-20)L * 6%
Replies (5)

In all three cases answer is A) provided you are registered dealer.

In case if registration applied (in this year) due to cross over of the threshold limit; in that case answer will be on all the turnover from the date of registration.  (turnover prior to registration date gets exemption).

In all the above cases, the correct answer is (A).
So in first year of registration, answer is B, in all subsequent years answer is A, right?

CORRECT ....

 

Thank you :).........


CCI Pro

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