Explore The Crucial Metrics For Determining Aggregate Turnover

MCQ SELF CHALLENGE # 0081

Determination Of Aggregate Turnover For The Purpose Of Composition Scheme

Dear Professional Seniors & Friends.

Warm Greetings!

Here is the Next post of #MCQ on concept-based practical professional knowledge on Determination of Aggregate: Turnover for the Purpose of Composition Scheme in a unique manner to be self-answered by participants. The detailed answers to these MCQs shall be posted the next day for the self-assessment of the participants.

Get in touch with our tax consultant in Gurgaon to clear your doubts or in case of any tax-related assistance.

MCQ 81.1: Mr. X supplies Taxable goods worth Rs 90 lacs and Exempt services worth Rs 30 Lacs. What would be the Aggregate turnover in order to determine his eligibility for the Composition Scheme as per GST?

A. 30Lacs, Eligible for Composition scheme

B. 90Lacs, Eligible for Composition scheme

C. 120Lacs. Eligible for Composition scheme

D. 120 Lacs Not Eligible for Composition Scheme

MCQ 81.2: If in the above case, Mr. X is a Restaurant owner and he provides restaurant service. What would be the Aggregate turnover in order to determine his eligibility for the Composition Scheme?

A. 30Lars. Eligible for Composition scheme

B. 90Lacs. Eligible for Composition scheme

C. 120Lacs. Eligible for Composition scheme

D. 120 Lacs Not Eligible for Composition Scheme

Answer MCQ Self Challenge # 081

This post of MCQ is on provisions relating to the Determination of Aggregate Turnover for the Composition Scheme in the GST Regime.

Answer to MCQ 81.1:

D) 120tacs, Not Eligible for composition scheme

Practical Analysis for MCQ 81.1:

Determination of Aggregate Turnover for Composition Scheme under GST

• As per Section 2(6) of the CGST Act Aggregate Turnover means aggregate Value of
• All Taxable supplies (excluding the Value of inward Supplies on which Tax is payable on Reverse Charge Basis
• Exempt Supplies
• Export of Goods or Services or Bath
• Inter-state Supplies of persons having the same PAN but excludes: Central tax State Tax, Union Territory Tax Integrated Tax Cess.
• As per Section 10(1) of CGST Act 2017 registered person whose aggregate turnover in the preceding financial year did not exceed 1 Crore will be eligible to opt for payment of tax under the Composition Scheme.
• In the above Question 81.1 thus the Aggregate Turnover is
• Taxable Supplies- 90Lacs
• Exempt Supplies - 30 Lacs

Gross Total 120Lacs > 1 Crore

Based on the above analysis, correct answer to 81.1: D. 120Lacs, Not Eligible for composition scheme

Answer to MCQ 81.2-

B) 90Lacs, Eligible for composition scheme

Practical Analysis for MCQ 81.2:

Aggregate turnover is determined on the basis of Section 2(6) of the CGST Act however there is a special exception to a person who supplies Restaurant Service

• In the case of Restaurants/Caterers, Exempt Services is not to be includible in the definition of "Aggregate Turnover vide The Central Goods and Services Tax (Removal of Difficulties Order 2017)-Order No. 01/2017-CT dated 13-10-2017 in composition scheme under section 10 subject to fulfillment of all other conditions specified therein
  
• Sec 10(2) specifies that in the case of service provider, only the supplier of Restaurant Service can opt for a composition scheme
  
• In the above the Aggregate Turnover is
• Taxable Supplies- 90Lacs
• Exempt Supplies - 30 Lacs Not to be included

Aggregate Turnover 90Lacs < 1 Crore

Thus eligible to be Registered under the Composition Scheme.

Correct answer to MCQ 81.2: B)90Lacs. Eligible for composition scheme

Disclaimer: The objective of the MCQ post is just to discuss the concept. It may happen, by change of facts, the answer may be different. Please do not treat this as a professional opinion: you can definitely have your own opinion.)

Sincere Regards,

CA Sanjay Kumar Agrawal

Mobile: 9810116321