Avalara > Blog > Goods and Services Tax > GST Composition Benefit not available if turnover exceeds Rs. 5 Lakh or 10% of Turnover in State

GST Composition Benefit not available if turnover exceeds Rs. 5 Lakh or 10% of Turnover in State

  • Jun 2, 2020 | Divita S Gupta

The Karnataka Authority in Advance Ruling has held that taxpayers are eligible for composition scheme under Section 10 of Central Goods and Service Tax (CGST) Act, 2017 only if the turnover services of the applicant does not exceed the 10% of turnover in a state or union territory in the preceding financial year or for ₹5 lakh. An applicant approached the AAR in Karnataka seeking an advance ruling on whether the applicant is eligible for a composition scheme under Section 10 of Central Goods and Service Tax (CGST) Act, 2017 when the business’s aggregate turnover is INR 50,00,000. The AAR bench held that the composition scheme could only be opted up to a specific turnover.


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Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.