A person who was making inter-state supplies during the previous year but not making inter-state supplies during the current year, can he avail the benefit of composition under GST?

Section 10 - Composition levy.

THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

As per the scheme of the GST, the intention of extending the benefit of composition scheme to small manufacturer or trader (including Dabhas) only.

Therefore, it can be construed clearly that since the turnover the previous year is a determining factor for eligibility of composition scheme, a registered person who was making inter-state supplies during the previous year, cannot be allowed to avail the benefit of composition scheme during the current year even if the turnover of the previous years remain below the threshold limit.

Dated: 23-7-2017