Example

Mr. A is a trader who sells his ready-made clothes online on Amazon India (an Electronic Commerce Operator). He received an order for Rs 15, 00,000 in the previous year. Mr. A also sells goods from their out lets. Aggregate turnover of Mr A in the previous year was Rs 27,00,000. Is Mr. A eligible for composition scheme?

Answer

Section 10 of CGST Act regarding Composition scheme specifies that the registered person shall not be eligible for composition scheme if he is engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52

Since Mr. A is engaged in making supply of goods through an electronic commerce operator who is required to collect tax at source under section 52 of CGST Act, 2017. Hence, Mr. A is not eligible for composition scheme.