The condition to opt for composition we will be only available if the aggregate turnover in the preceding financial year did not exceed INR 50 lakhs.
Following categories of taxable person will be not allowed to opt for compositionWho is engaged in the supply of services?
- Who makes any supply of goods which are not leviable to tax under this Act
- Who makes any inter-State outward supplies of goods
- Who makes any supply of goods through an electronic commerce operator who is required to collect tax at source under section.
- Examples include aggregators such as amazon, flipkart, snapdeal, myntra and other platforms which enables other merchants to sell goods electronically who is a manufacturer of such goods as may be notified on the recommendation of the Council:
Important Point to be noted:
- PROVIDED FURTHER that no such permission shall be granted to a taxable person unless all the registered taxable persons, having the same PAN as held by the said taxable person, also opt to pay tax under the provisions of this sub-section.
- The permission granted to a registered taxable person under sub-section (1) shall stand withdrawn from the day on which his aggregate turnover during a financial year exceeds fifty lakh rupees.
- A taxable person to whom the provisions of sub-section (1) apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
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