Anurag Awasthi asked 4 years ago
GST under composition scheme
Hi
I am a taxpayer under composition scheme with annual turnover below 40 lakh. I saw an advertisement from Govt in a national daily that businesses with annual turnover below 40Lakh are exempted from GST. Does it mean that I need not pay any GST on outward supplies unless it exceeds 40 lakhs for that year?
Answer the question1 Answers
Sakshi Virmani answered 4 years ago
Exemption and not liable to registration are two different terms. Limit of annual turnover below Rs 40 lac is applicable for dealer of goods and is subject to conditions. If you fulfill all the conditions of section 22 read with notification then no registration and liability to pay tax arise till annual turnover exceeds Rs 40 lac.
Registration is optional for those whose turnover is less than 40Lakh.
Since you have already taken a registration, you need to pay taxes on outward supplies.
If you feel that you would do not want to be under GST then you can cancel your registration and be unregistered as long as your turnover does not exceed the prescribed limit (40Lakh).