MCQ Self Challenge # 0081 on Determination of Aggregate Turnover for the Purpose of Composition Scheme

Determination of Aggregate Turnover for the Purpose of Composition Scheme

Dear Professional Seniors & Friends,
Warm Greeting!

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

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

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

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CA Sanjay Kumar Agrawal
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Answer MCQ Self Challenge # 081

Dear Professional Seniors & Friends,

Warm Greetings!

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

Answer to MCQ 81.1: D. 120Lacs , Not Eligible for composition scheme

Answer to MCQ 81.2: B.90Lacs , Eligible for composition scheme

Practical Analysis for MCQ 81.1

Determination of Aggregate Turnover for Composition Scheme under GST

• As per Section 2(6) of 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 Both
• Inter-state Supplies of persons having 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

Practical Analysis for MCQ 81.2

Aggregate turnover is determined on the basis of Section 2(6) of the CGST Act ,however there is an 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 fulfilment of all other conditions specified there in .
• Sec 10(2) specifies that in case of service provider only supplier of Restaurant Service can opt for 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 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 professional opinion; you can definitely have your own opinion.)

Sincere Regards!

CA Sanjay Kumar Agrawal

Mobile: 9810116321

To access MCQ posts regularly, please Join Telegram Channel:
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