Page 153 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : GHALIB IQBAL SHERIFF 399
(a) The applicant states that they are into two lines of business, one for
the supply of goods and other for the renting of immovable proper-
ty. He states that he is eligible for composition scheme as his aggre-
gate annual turnover is much less than Rs. 50 Lakhs as the scheme is
applicable to both sale of goods and renting of immovable property
service provision.
(b) The applicant contends that the supply of goods (sales) and the
supply of service (rent) are unrelated and totally unconnected and
hence he is liable to pay 1% as composition tax on supply of goods
and 6% on the supply of service (rent), and the two amounts to-
talled and paid.
Personal hearing :/Proceedings held on 2-1-2020
5. Sri Ghalib Iqbal Sheriff, proprietor of the above concern appeared for
personal hearing proceedings on 2-1-2020 before this authority and reiterated the
facts.
Findings & Discussion
6. We have considered the submissions made by the Applicant in their
application for advance ruling as well as the submissions made by him when he
appeared for the personal hearing. We have also considered the issues involved,
on which advance ruling is sought by the applicant, and relevant facts.
6.1 At the outset, we would like to state that the provisions of both the
CGST Act and the KGST Act are the same except for certain provisions. There-
fore, unless a mention is specifically made to such dissimilar provisions, a refer-
ence to the CGST Act would also mean a reference to the same provisions under
the KGST Act.
6.2 The applicant, admittedly has two lines of business, one for the
supply of goods and other for the supply of services. There is no dispute that
both the activities of the applicant are taxable and also supplied by the same per-
son. The applicant states the annual aggregate turnover of both the activities put
together is not more than Rs. 50 Lakhs.
7. The question of eligibility of the applicant to pay tax under Section
10 of the CGST Act, 2017 is examined and the following are noticed :
7.1 Section 10 of the CGST Act, reads as under :
“(1) Notwithstanding anything to the contrary contained in this Act but
subject to the provisions of sub-sections (3) and (4) of Section 9, a registered
person, whose aggregate turnover in the preceding financial year did not
exceed fifty lakh rupees may opt to pay, in lieu of the tax payable by him
under sub-section (1) of Section 9, an amount of tax calculated at such rate
as may be prescribed, but not exceeding, -
(a) one per cent, of the turnover in State in case of a manufacturer,
(b) two and a half per cent, of the turnover in State in case of per-
sons engaged in making supplies referred to in clause (b) of
paragraph 6 of Schedule II, and
(c) half per cent, of the turnover in State in case of other suppliers,
subject to such conditions and restrictions as may be prescribed :

GST LAW TIMES  21st May 2020  153