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CS Executive · Tax Laws and Practice · Levy and Collection of GST

Under the composition levy provisions of the CGST Act, 2017, which of the following registered persons is eligible to opt for the scheme under sub-section (1) of section 10, assuming the turnover limit is satisfied?

A trader making only intra-State outward supplies of goods can opt for composition under section 10(1). The others are barred: inter-State outward supplies, casual taxable persons and supplies through e-commerce operators liable to collect tax at source under section 52 are each disqualifying conditions.

  1. AA trader of goods making only intra-State outward suppliesCorrect
  2. BA trader of goods making inter-State outward supplies of goods
  3. CA casual taxable person supplying goods within the State
  4. DA trader supplying goods through an e-commerce operator who must collect tax at source under section 52

Explanation

Section 10(2) denies the scheme to persons making inter-State outward supplies, casual taxable persons and those supplying through an e-commerce operator required to collect tax at source. A trader making only intra-State supplies of taxable goods meets the conditions, so only the first option is eligible.

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