(a) M/s. T is a registered dealer of Andhra Pradesh trading in different types of machinery and its related different types of services. Their…

(a) A registered person is eligible to opt for composition scheme for goods in the current financial year (FY) provided his aggregate turnover does not exceed - 1.50 crore [other than in specified Special Category States] in the preceding FY. Since aggregate turnover of M/s. T in the preceding FY does not exceed - 1.5 crore, he is eligible for composition scheme for goods under section 10 (1) and 10 (2) of the CGST Act, 2017 in the current FY. As per section 10(2A) of the CGST Act, 2017, a registered person who is eligible to pay tax under section 10 (1) and (2) is not eligible for opting for composition under section 10(2A) of the CGST Act, 2017. As per section 10(2A) of the CGST Act, 2017, person engaged in the supply of service is eligible for composition scheme for payment of tax @3% CGST and 3% SGST provided his aggregate turnover does not exceed 50lakh in the preceding FY. Since turnover of previous year is 1.32 crore and firm is not dealing in the service only, M/s T cannot opt for composition scheme under section 10(2A) of the CGST Act, 2017 for FY 2023-24. A person who opts to pay tax under composition scheme under section 10 (1) and 10 (2) of the CGST Act, 2017 is also permitted to supply services [other than restaurant services] upto a value not exceeding: (a) 10% of the turnover in a State/U.T. in the preceding financial year, or (b) 5lakh, whichever is higher. Thus, M/s T is permitted to supply services upto a value of 13,20,000 i.e. 10% of 1.32 crores, in current FY. Further, there is no restriction on composition supplier to receive inter-State inward supplies of goods or services. Thus, it can be concluded that M/s T can opt for composition scheme of goods under section 10 (1) of the CGST Act, 2017 for FY 2023-24.