Mr. Vivaan has a repair centre, registered under GST, where electronic goods are repaired/serviced. His repair centre is located in State of…

Section 10 (1) of the CGST Act, 2017 provides that a registered person, whose aggregate turnover in the preceding financial year did not exceed - 1.5 crore (75lakh in Special Category States except Assam, Himachal Pradesh and Jammu and Kashmir), may opt to pay, in lieu of the tax payable by him, an amount calculated at the specified rates. However, as per proviso to section 10 (1) of the CGST Act, 2017, person who opts to pay tax under composition scheme may supply services other than restaurant services, of value not exceeding 10% of the turnover in a State or Union territory in the preceding financial year or 5lakh, whichever is higher. In the given case, since Mr. Vivaan is an exclusive supplier of services other than restaurant services [viz. repair services], he is not eligible for composition scheme under section 10 (1) & 10 (2) of the CGST Act, 2017. However, section 10(2A) of the CGST Act, 2017 provides an option to a registered person (subject to certain conditions) whose aggregate turnover in the preceding financial year is upto 50lakh and who is not eligible to pay tax under composition scheme under section 10 (1) & 10 (2) of the CGST Act, 2017, to pay tax @ 3% [Effective rate 6% (CGST+ SGST/UTGST)] of the turnover of supplies of goods and services in the State or Union territory. Thus, in view of the above-mentioned provisions, Mr. Vivaan is eligible to avail the composition scheme under section 10(2A) as his aggregate turnover in the preceding FY does not exceed 50lakh and he is not eligible to opt for the composition scheme under section 10 (1) & 10 (2) of the CGST Act, 2017. Thus, the amount of tax payable by him as per the composition scheme under section 10(2A) of the CGST Act, 2017 is 2,10,000 [6% of 35lakh]. A registered person cannot opt for composition scheme under section 10(2A), if, inter alia, he is engaged in making any inter-State outward supplies. However, there is no restriction on inter-State procurement of goods. Hence, answer will remain the same even if Mr. Vivaan procures few items from neighboring State of Madhya Pradesh.