Q.51 Whether a supplier who opted for composition scheme under GST also lible to pay tax on non taxable supplies by him ?

Ans. As per the provisions of Section 10(2) of the CGST Act’2017,

The registered person shall be eligible to opt under sub-section (1), if:-

(a)…….

(b) he is not engaged in making any supply of goods [or services])which are not leviable to tax under this Act;

Therefore, as reproduced above, the registered person shall not be eligible to opt for composition scheme.

Q.50 Under Composition scheme u/s 10 is there any restrictions on purchase from unregistered persons or availing services other than those falling under reverse charge u/s 9(3) & 9 (4) ? 

Ans. As per the provisions of Section 10(4) of the CGST Act’2017, 

“A registered person who opts to pay tax under section 10 shall not collect any tax from the recipient on supplies made by him and will also not be entitled to credit of input tax”. 

Thus, since the registered person is not entitled to input tax, he can purchase from an unregistered person also. 

Q. 49 In the records of Mr A (Individual) a difference in Turnover is noticed during 2017-18.
Particulars _________________ Turnover
As per VAT (Apr-Jun 2017) : Rs 5 Lakhs
As per GST (Jul 17 to Mar 18) : Rs 25 Lakhs
Total Turnover : Rs 30 Lakhs;
But, As per Tax Audit : Rs. 35 Lakhs

There is a difference in Turnover between VAT/GST Return and Tax Audit of Rs 500000

Mr A claims that The Tax Audit Figure is wrong. Can he do so?
If No, What are the consequences (Legal Proceedings, Fine, Interest, Interest etc) which he may face ? 

Ans. This is a very subjective question and can be answered based on the facts. Still, the claim of Mr. A can be verified with the invoices raised by him during the year. Since, turnover is less reported in GST/VAT return, this may be due to omission.

Therefore, the details can be verified with the help of invoice issued bearing serial in sequence. Also, details can be checked from 26AS.