Page 155 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : GHALIB IQBAL SHERIFF 401
(ii) who is not eligible to pay tax under sub-section (1) of Section
10 of the said Act
(iii) ……
(iv) ……
(v) ……
(vi) ……”
2. Where more than one registered person are having the same Permanent
Account Number, issued under the Income-tax Act, 1961 (43 of 1961), cen-
tral tax on supplies by all such registered persons is paid at the rate speci-
fied in column (2) under this notification.”
8.2 On perusal of the above conditions, an applicant shall be eligible to
pay tax under the said notification, only if the applicant is not eligible to pay tax
under Section 10(1) of the CGST Act and the applicant does not satisfy the above
condition as he is registered under Section 10 of CGST Act, 2017. Regarding the
other condition, the applicant has admitted that his aggregate turnover is less
than Rs. 50 Lakhs and hence he satisfies this condition and other conditions are
not applicable to him. Hence the applicant is not eligible to pay tax under the
Notification on the entire aggregate turnover as long as he continues to be regis-
tered as Composition Taxpayer. If the applicant opts out of the Composition levy
and he obtains separate registrations for the two lines of business, as per second
condition, he shall be liable to pay tax at 3% CGST and 3% SGST on the each of
the turnovers of the registrations. The tax is on the entire aggregate turnover i.e.
all the “first supplies of goods or services or both upto an aggregate turnover of
Rs. 50 Lakhs”. Hence the applicant is liable to pay tax under CGST Act at 3% and
at 3% under KGST Act, if he opts to pay tax under the said Notification after opt-
ing out of Composition levy on the entire value of supplies made and he cannot
apply different schemes for different types of transactions.
9. In view of the foregoing, we rule as follows.
RULING
(1) The applicant is eligible to be in the composition scheme under Sec-
tion 10 of the CGST Act, 2017 if the turnover of services of the appli-
cant does not exceed ten per cent of turnover in a State or Union ter-
ritory in the preceding financial year or five lakh rupees, whichever
is higher.
(2) The applicant is not eligible to opt to pay tax under the Notification
No. 2/2019-Central Tax (Rate), dated 7-3-2019 and under the Notifi-
cation (02/2019) No. FD 48 CSL 2017, dated 7-3-2019 of the Gov-
ernment of Karnataka as the applicant is registered as a Composi-
tion Taxpayer.
(3) The rate of tax applicable on the entire value is 3% CGST and 3%
KGST and he cannot pay tax at 1% on supply of goods and 6% tax
on the supply of services.

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GST LAW TIMES  21st May 2020  155