Mr. S, a manufacturer of medicines, whose turnover for financial year 2017-18 was of ₹70 lakh opted to pay tax under GST as per composition scheme from 1st April, 2018. His turnover crosses ₹1 crore on 30 November, 2018.

CS Executive · Tax Laws and Practice · PYQS · December 2018
Mr. S, a manufacturer of medicines, whose turnover for financial year 2017-18 was of ₹70 lakh opted to pay tax under GST as per composition scheme from 1st April, 2018. His turnover crosses ₹1 crore on 30 November, 2018. Will he be allowed to pay tax under composition scheme for the remainder of year i.e. from 1st December, 2018 to 31st March, 2019?
(A) Yes, he can avail the benefit till 31st March, 2019
(B) No, the option availed shall lapse from the day on which his aggregate turnover during the financial year 2018-19 exceeds ₹1 crore
(C) Yes, the option can be availed upto completion of half financial year i.e. till 30th September, 2018
(D) None of the above

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: GST

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