What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme?

A. Rs.75 lacs

B. Rs.1 crore

C. Rs.1.5 crore

D. None of the above

Answer: Option C

Solution(By Examveda Team)

Businesses dealing only in goods can only opt for composition scheme. Services providers have been kept outside the scope of this scheme. However, restaurant sector taxpayers may also opt for the scheme. This holds true if your annual turnover is below Rs 1.5 crore. Earlier GST turnover threshold for obtaining the composition scheme was 1 crore which is now raised to 1.5 crore and in some states it is 75 lakhs.