Answer

1. F

   Facts

   Eligibility is tested on aggregate turnover of the previous year, which includes taxable, exempt, export and inter-State supplies on the same PAN, but not GST itself. Interest on deposits and loans is excluded when testing composition eligibility.

2. P

   Provisions and law

   • Sec 2(6), CGST Act 2017Aggregate turnover includes taxable, exempt, export and inter-State supplies of persons with the same PAN, excluding taxes
   • Sec 10, Explanation 1, CGST Act 2017Interest income on deposits, loans or advances is not counted for composition eligibility
   • Sec 10(1), CGST Act 2017Eligible registered persons with aggregate turnover up to Rs 1.5 crore in the preceding year may opt to pay tax at composition rates
3. A

   Analysis

   Example: a grocer has Rs 1.3 crore taxable sales, Rs 15 lakh exempt sales of fresh vegetables and Rs 2 lakh FD interest. For eligibility, count Rs 1.45 crore; the interest is left out, so he can opt. If exempt sales were Rs 25 lakh, the total would be Rs 1.55 crore and he could not. Work from books, not only from returns.

4. C

   Conclusion

   1. 1Add taxable, exempt and export sales of all GSTINs on your PAN
   2. 2Leave out GST and interest income on deposits and loans
   3. 3Compare with Rs 1.5 crore or your State limit
   4. 4Keep the working with your CMP-02 papers

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.