TMI Blog2020 (4) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 territory 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 ₹ 5 Lakhs or ten percent of turnover is the state, whichever is higher. N/N. 2/ 2019 - Central Tax (Rate) dated 07.03.2019 - HELD THAT:- The said notification pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICES TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017 1. Sri Ghalib Iqbal Sheriff, proprietor of M/s. Empathic Trading Centre, No.63/3 63/4, Noor Building, J.C. Road, Bengaluru-560002 and having a GSTIN 29ALOPS5446H1ZE, has filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in FORM GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The applicant is a proprietary concern registered under the provisions of the Goods and Services Act, 2017. The applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmovable 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 totaled and paid. PERSONAL HEARING: / PROCEEDINGS HELD ON 02.01.2020 5. Sri Ghalib Iqbal Sheriff, proprietor of the above concern appeared for personal hearing proceedings on 02.01.2020 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 perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturer, (b) two and a half per cent. of the turnover in State in case of persons 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: Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore and fifty 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 exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te or Union territory 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 ₹ 5 Lakhs or ten percent of turnover is the state, whichever is higher. 8. Coming to the notification no.2/ 2019 - Central Tax (Rate) dated 07.03.2019, the said notification prescribes the rate of tax for the first supplies of goods or services or both upto an aggregate turnover o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover as long as he continues to be registered 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 ₹ 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 opting out of Composition levy on the entire value of supplies made and he cannot apply different schemes for different types of tra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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