Determine whether the suppliers in the following cases are eligible for composition levy, under section 10(1) and 10(2) of CGST Act, 2017 provided their turnover in preceding financial year was ₹1.06 crore: (a) Yash Ente

(a) A supplier engaged in the manufacture of goods as notified under section 10(2), during the preceding FY is not eligible for composition scheme under section 10(1) and 10(2). Ice cream and other edible ice, whether or not containing cocoa, Pan masala, Tobacco and manufactured tobacco substitutes and aerated waters are notified under this category. However, in the given case, since Yash Enterprises is engaged in trading of pan masala and not manufacture and his turnover does not exceed ₹1.5 crore, he is eligible for composition scheme subject to fulfilment of specified conditions. (b) Supplier of inter-State outward supplies of goods or services is not eligible for composition levy. Since, Anirudh manufacturers made inter-state supply. Hence, he is not eligible for composition levy.