9911796707
TMI Blog2020 (4) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 Rs. 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 applicant states that he is engaged in the business of supplying goods under the trade name "Empathic Trading Centre" and is also a supplier of ser-vice of renting of immovable property. He states that there is no connection whatsoever between the two lines of business and they are two separate and distinct business activities. He also states th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.01.2020 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 personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 6.1 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 (I), 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; ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant exceeds Rs. 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 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 composition 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; (ii) who is not eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 transactions. 9. In view of the foregoing, we rule as follows RULING 1. The applicant is eligible to be in the composition scheme under section 10 of the CGST Act, 2017 if the turnover of services of the applicant does not exceed 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 applicant is not eligible to opt to pay tax under the Notification No.2/2019- Central Tax (Rate) dated 07.03.2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
