Xavier started profession of Architect w.e.f. 01.04.2020. His value of intra-state taxable supply upto 30.09.2020 was ₹20 lakh. He applied for registration on 01.10.2020 and opted for Presumptive Scheme for service suppl

As per Notification No. 02/2019-CT(R) dated 07.03.2019, if registered person is eligible to take the benefit of this notification, he shall pay GST at the rate of 6% (3% CGST and 3% SGST/UTGST) on his aggregate turnover i.e., "First supplies of goods or services or both" upto ₹50 lakhs. Explanation to Notification No. 02/2019-CT(R) dated 07.03.2019 provide that the expression "first supplies of goods or services or both" shall, for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act. At the same time, for determining its eligibility to the scheme, the supplies made from 1st day of April till it becomes eligible for scheme shall be taken into account. Thus, where supplier has taken the GST registration for the first time, the presumptive tax at the rate of 6% shall be payable on the supplies made by him only after the date of registration. In the instant case, Xavier was eligible to opt for composition scheme as on 1.10.2020 as his aggregate turnover till such date was ₹20 lakhs [less than ₹50 lakhs]. Since for the purpose of eligibility, the turnover from the first day of April needs to be considered, the turnover of ₹20 lakhs made during 1.4.2020 and 30.9.2020 also shall be included, the turnover of Xavier breached the limit of ₹50 lakhs during the period 1.10.2020 and 31.12.2020 as he made supplies for ₹35 lakhs during such period. Thus, the amount of composition tax liability of Xavier under notification No. 2/2019-CT (R) will be ₹30,00,000 x 6% = ₹1,80,000. Xavier shall be liable to pay tax under normal scheme on turnover of ₹5,00,000.