Page 154 - GSTL_21st May 2020_Vol 36_Part 3

400 GST LAW TIMES [ Vol. 36
Provided that the Government may, by notification, increase the said limit
of fifty lakh rupees to such higher amount, not exceeding one crore and fif-
ty lakh rupees, as may be recommended by the Council :
Provided further that a person who opts to pay tax under clause (a) or
clause (b) or clause (c) may supply services (other than those referred to in
clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per
cent, of turnover in a State or Union territory in the preceding financial year
or five lakh rupees, whichever is higher.
(2) The registered person shall be eligible to opt under sub-section (1), if -
(a) save as provided in sub-section (1), he is not engaged in the
supply of services;
(b) he is not engaged in making any supply of goods which are
not leviable to tax under this Act;
(c) he is not engaged in making any inter-State outward supplies
of goods;
(d) he is not engaged in making any supply of goods through an
electronic commerce operator who is required to collect tax at
source under Section 52;
(e) he is not a manufacturer of such goods as may be notified by
the Government on the recommendations of the Council :
(f) he is neither a casual taxable person nor a non-resident taxable
person :
Provided that where more than one registered person are having the same
Permanent Account Number (issued under the Income-tax Act 1961 (Cen-
tral Act 43 of 1961)), the registered person shall not be eligible to opt for the
scheme under sub-section (1) unless all such registered persons opt to pay
tax under that sub-section.
7.2 The applicant admittedly is supplying services and hence the eligi-
bility for composition scheme is dependent on the satisfaction of the condition
stipulated in the second proviso to sub-section (1) of Section 10. If the turnover of
services of the applicant exceeds ten per cent of turnover in a State or Union ter-
ritory in the preceding financial year or five lakh rupees, whichever is higher,
then he shall not be eligible to composition scheme. Even if the applicant obtains
separate registration, one for the goods and other for the services, he would not
be eligible for composition for both the lines of business. Hence the applicant is
not eligible for composition under Section 10 of the CGST Act if the turnover of
services of the applicant exceeds Rs. 5 Lakhs or ten per cent of turnover is the
State, whichever is higher.
8. Coming to the Notification No. 2/2019-Central Tax (Rate), dated 7-3-
2019, the said notification prescribes the rate of tax for the “first supplies of
goods or services or both upto an aggregate turnover of fifty lakh rupees made
on or after the 1st day of April in any financial year, by a registered person” and
is not issued under Section 10 of the CGST Act, 2017. Hence it is not a composi-
tion scheme but is an optional scheme.
8.1 The conditions for the scheme are as under :
“1. Supplies are made by a registered person, -
(i) whose aggregate turnover in the preceding financial year was
fifty lakh rupees or below;

GST LAW TIMES  21st May 2020  154