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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Supply under GST

Under section 10 of the CGST Act, 2017, which of the following registered persons is NOT eligible to opt for the composition levy under sub-section (1) and sub-section (2)?

A trader making inter-State outward supplies of goods is not eligible for composition under section 10. The law requires that the person is not engaged in making any inter-State outward supplies of goods or services, so such a trader cannot opt even if turnover is within the limit.

  1. AA trader of goods whose aggregate turnover in the preceding financial year was below the prescribed limit and who makes only intra-State supplies
  2. BA manufacturer who makes only intra-State supplies of goods that are leviable to tax
  3. CA trader who makes inter-State outward supplies of goodsCorrect
  4. DA person engaged in supplies referred to in clause (b) of paragraph 6 of Schedule II, making only intra-State supplies

Explanation

Section 10(2)(c) makes a person ineligible if he is engaged in any inter-State outward supplies of goods or services. The other persons meet the conditions, so they may opt, subject to the turnover limit and other conditions.

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