[Solved] What will happen if the turnover of a registered person opting to pay taxes under composition scheme during the year 2019-20 crosses threshold limit?

Q.	What will happen if the turnover of a registered person opting to pay taxes under composition scheme during the year 2019-20 crosses threshold limit?
A.	He can continue under composition scheme till the end of the financial year
B.	He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year 2019-20
C.	He will cease to remain under the composition scheme with immediate effect
D.	He will cease to remain under the composition scheme from the quarter following the quarter in which the aggregate turnover exceeds threshold limit
Answer» C. He will cease to remain under the composition scheme with immediate effect

760

Do you find this helpful?

View all MCQs in

Indirect Taxes- GST

Discussion

No comments yet

Related MCQs

What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for States other than special category States?
What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for special category states?
What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme for a trader in Mumbai?
What is the rate applicable under CGST to a registered person being a manufacturer opting to pay taxes under composition scheme?
What is the rate applicable under CGST to a registered person being a hotelier (providing restaurant and accommodation services) opting to pay taxes under composition scheme?
ABC Ltd is manufacturer of goods opting for Composition Scheme has effected turnover of ` 60 Lakhs during the financial year 2019-20. The CGST portion for composition tax payable by ABC Ltd is
For certain Special category States, the reduced limit of ` 75 lakhs for opting composition scheme is available. The reduced limit of ` 75 Lakhs is not available for?
Can a registered person opting for composition scheme collect tax on his outward supplies?
If a person, opting for composition scheme is liable to be registered on 1st October, 2019 and he has applied for registration on 17th November, 2019 and registration granted on 20th November, 2019 then the effective date of registration will be
Section 2(6) of the CGST / SGST Act, 2017 defines aggregate turnover which is being computed on all India basis excluding the taxes charged under CGST Act, SGST Act, UTGST Act and IGST Act. Aggregate turnover shall include all supplies made by a taxable person comprising of (i) Taxable supply (ii) Exempt supply (iii) Export of goods and services (iv)All inter-state supply of person having same PAN (v) Supply on which tax is levied on reverse charge basis (vi)Value of all inward supply