GST Composition Benefit not available if turnover exceeds Rs. 5 Lakh or 10% of Turnover in State

GST Composition Benefit not available if turnover exceeds Rs. 5 Lakh or 10% of Turnover in State

The Karnataka Authority in Advance Ruling has held that taxpayers are eligible for composition scheme under Section 10 of Central Goods and Service Tax (CGST) Act, 2017 only if the turnover services of the applicant does not exceed the 10% of turnover in a state or union territory in the preceding financial year or for ₹5 lakh. An applicant approached the AAR in Karnataka seeking an advance ruling on whether the applicant is eligible for a composition scheme under Section 10 of Central Goods and Service Tax (CGST) Act, 2017 when the business’s aggregate turnover is INR 50,00,000. The AAR bench held that the composition scheme could only be opted up to a specific turnover.

Recent posts
Avalara TaxQuest: Sales tax implications for foreign businesses that use third-party warehouses in the U.S
Malaysia adopts new centralised e-invoicing system
Avalara TaxQuest Question: Do foreign businesses need to collect sales tax at U.S. trade shows?

Prepare your business for e-invoicing under GST

Discover how to meet all compliance requirements while integrating e-invoicing into your tax function.

Prepare your business for e-invoicing under GST

Stay up to date

Sign up for our free newsletter and stay up to date with the latest tax news.