Section 10 CGST Act 2017 (COMPOSITION SCHEME) is available to TAXPAYERS with TURNOVER up to:
Answer & Solution
Correct answer: D.
1. Section 10 CGST Act 2017 provides for the COMPOSITION LEVY — a simplified tax regime for small taxpayers.
2. ELIGIBILITY: turnover in preceding financial year UP TO Rs 1.5 CRORE (Rs 75 lakh for special category States — Arunachal, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand).
3. RATES (under composition):
4. (a) MANUFACTURER: 1% (0.5% CGST + 0.5% SGST);
5. (b) RESTAURANT (NOT serving alcohol): 5% (2.5% CGST + 2.5% SGST);
6. (c) OTHER (TRADER): 1% (0.5% CGST + 0.5% SGST).
7. RESTRICTIONS: no inter-State outward supplies; no e-commerce sales; no manufacture of notified goods; cannot collect tax; cannot claim ITC.
8. Service providers can opt for composition scheme up to Rs 50 LAKH turnover (Section 10(2A)).
9. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — CGST Act 2017, Section 10_
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