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Questions and Answers
Who is liable to pay GST for services provided by an arbitral tribunal to any business entity?
Who is liable to pay GST for services provided by an arbitral tribunal to any business entity?
The recipient, business entity, is liable to pay GST under reverse charge.
Who is liable to pay GST for sponsorship services provided by a company to an individual?
Who is liable to pay GST for sponsorship services provided by a company to an individual?
The supplier, company, is liable to pay GST under forward charge.
Who is liable to pay GST for renting of immovable property service provided by the Central Government to a registered business entity?
Who is liable to pay GST for renting of immovable property service provided by the Central Government to a registered business entity?
The recipient, business entity, is liable to pay GST under reverse charge.
Who is liable to pay GST for services supplied by an insurance agent to an insurance company?
Who is liable to pay GST for services supplied by an insurance agent to an insurance company?
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Who is liable to pay GST for services supplied by a recovery agent to a car dealer?
Who is liable to pay GST for services supplied by a recovery agent to a car dealer?
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Who is liable to pay GST for security services provided to a registered person?
Who is liable to pay GST for security services provided to a registered person?
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Who is liable to pay GST in the case of a registered Goods Transport Agency (GTA) providing transportation services to an unregistered entity?
Who is liable to pay GST in the case of a registered Goods Transport Agency (GTA) providing transportation services to an unregistered entity?
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Who is liable to pay GST for the temporary transfer of copyright services from an unregistered author to a publication?
Who is liable to pay GST for the temporary transfer of copyright services from an unregistered author to a publication?
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Who is liable to pay GST for renting residential units owned by Siddhi Builders to Rudra Technologies?
Who is liable to pay GST for renting residential units owned by Siddhi Builders to Rudra Technologies?
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What is required to determine Mr. Zafar's eligibility for the composition levy scheme?
What is required to determine Mr. Zafar's eligibility for the composition levy scheme?
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Study Notes
Composition Levy Scheme
- The composition levy scheme is a simplified GST regime that allows certain small taxpayers to pay a fixed percentage of their turnover as GST instead of following the regular GST compliance requirements.
- To determine if Mr. Zafar is eligible for the composition levy scheme, we need to calculate his aggregate turnover for the financial year 20X1-X2 and compare it to the threshold limit set by the GST Council.
- The aggregate turnover is the total value of all taxable supplies made by a taxpayer during a financial year.
- The threshold limit for composition levy varies from state to state and is generally based on the nature of the goods or services supplied.
- Mr. Zafar's aggregate turnover for the financial year 20X1-X2 needs to be calculated based on the information provided by him.
- Once calculated, the turnover should be compared to the threshold limit for composition levy in Assam, which is publicly available.
- If his turnover is below the threshold limit, he may be eligible to opt for the composition levy scheme.
- Further, there are certain restrictions on the types of businesses that can avail the composition levy scheme.
- The composition levy scheme is not available for certain businesses like those dealing in inter-state supplies of goods, those involved in manufacturing of goods attracting a GST rate of 12% or more, and those engaged in the supply of services through online marketplaces.
- Mr. Zafar's business activities need to be reviewed to ensure he aligns with the restrictions on the composition levy scheme.
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Description
This quiz explores the composition levy scheme under GST, focusing on eligibility based on aggregate turnover. Participants will need to calculate Mr. Zafar's turnover for the financial year 20X1-X2 and compare it against the threshold limit for Assam. Test your knowledge about GST compliance and the specifics of this simplified tax regime.
