Page 152 - GSTL_21st May 2020_Vol 36_Part 3

398 GST LAW TIMES [ Vol. 36
2020 (36) G.S.T.L. 398 (A.A.R. - GST - Kar.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
KARNATAKA
Dr. M.P. Ravi Prasad, Member (State Tax) and Shri Mashhood Ur Rehman
Farooqui, Member (Central Tax)
IN RE : GHALIB IQBAL SHERIFF
Advance Ruling No. KAR ADRG 28/2020, dated 23-4-2020
Composition scheme - Eligibility - Supplier of goods and services -
Assessee eligible to be in scheme if turnover of his services do not exceed ten
per cent of turnover in a State or Union Territory in preceding financial year or
five lakh rupees, whichever is higher - Assessee, a registered composition tax-
payer not eligible to opt to pay tax under Notification No. 2/2019-C.T. (Rate)
and under State Notification (02/2019) No. FD 48 CSL 2017 - Assessee liable to
pay tax on entire value at 3% CGST and 3% KGST and cannot pay tax at 1% on
supply of goods and 6% tax on supply of services - Section 10 of Central Goods
and Services Tax Act, 2017. [paras 7.2, 8.2, 9]
Ruling in favour of department
REPRESENTED BY : Shri Ghalib Iqbal Sheriff, Proprietor, for the Assessee.
[Order]. - Sri Ghalib Iqbal Sheriff, proprietor of M/s. Empathic Trading
Centre, No. 63/3 & 63/4, Noor Building, J.C.Road, Bengaluru-560002 and having
a GSTIN 29ALOPS5446H1ZE, has filed an application for Advance Ruling under
Section 97 of the CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and
Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in
FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act
and the KGST Act.
2. The applicant is a proprietary concern registered under the provi-
sions of the Goods and Services [Tax] Act, 2017. The applicant states that he is
engaged in the business of supplying goods under the trade name “Empathic
Trading Centre” and is also a supplier of service of renting of immovable proper-
ty. He states that there is no connection whatsoever between the two lines of
business and they are two separate and distinct business activities. He also states
that he is currently under composition scheme, having migrated to the composi-
tion scheme with effect from 1-4-2019 by virtue of Notification No. 2/2019-
Central Tax (Rate), dated 7-3-2019 as his aggregate turnover is much less than Rs.
50,00,000-00 per annum.
3. The applicant has sought advance ruling in respect of the following
questions :
(1) Whether he is eligible to be in the composition scheme as his aggre-
gate turnover is much less than Rs. 50,00,000-00?
(2) Whether the rate of composition tax applicable is 1% for the turno-
ver of goods (sales) and 6% for the turnover of service (rent). The
two separate taxes amounts to be totalled and paid or is it 6% as a
whole for the aggregate turnover of goods and service turnover that
is to be paid?
4. The applicant furnishes some facts relevant to the stated activity.

GST LAW TIMES  21st May 2020  152