Vimal, a small trader engaged in supply of pan masala & aerated waters in Dehradun, Uttrakhand made the following supply of goods and services during the financial year 2023-24: Outward supply of pan masala ₹ 65,00,0

The Calculation of Aggregate Turnover is as follows: Particulars Amounts in ₹ Outward taxable supply of pan masala 65,00,000 Renting of adjacent two commercial shops 7,30,000 Interest Income on advances Nil Note: Under the second proviso to section 10(1) of CGST Act, 2017, while computing the value of services [other than restaurant services] as referred to in this proviso, interest on loans/deposits/advances will not be taken into account. Total Aggregate Turnover 72,30,000 The registered person is ineligible for composition levy of section 10(1) of the CGST Act if quantum of services given in the current year exceeds higher of the following: 10% of turnover of the preceding financial year = 10% of ₹ 68,00,000 = ₹ 6,80,000 or; ₹ 5,00,000 {Second proviso to section 10(1) of CGST Act & section 10(2) (a) of CGST Act} Since, in given case, services provided in current financial year i.e. 2023-24 is of ₹ 7,30,000 i.e. it exceeds ₹ 6,80,000, it is ineligible to opt for composition levy in the current financial year i.e. 2023-24. It is irrespective of the fact that it's aggregate turnover in the preceding Financial Year does not exceed ₹ 75,00,000 in state of Uttarakhand. Note: Aggregate Turnover of the Financial Year 2023-24 amounting ₹ 72,30,000 shall be checked to determine eligibility to composition levy in the subsequent Financial Year i.e. F.Y. 2024-25.