One of my client is a ground nut decorticator. After decorating G nuts he collects decorticating charges. He also sells ground nut husk also. . Whether can he opt composition scheme? If so what is the rate of tax, and if not what is the rate of tax. And what is the HSN code? Please clerify me.

Reply—Yes, your client can opt for composition scheme in terms of notification no. 2/2019 (central tax) dated 7th March, 2019.

As per notification no. 02/2019-Central Tax (Rate) dated 7th March, 2019, a service provider can apply for composition scheme (3% CGST + 3% SGST) 

subject to the below mentioned conditions—

Supplies are made by a registered person, -

(i) whose aggregate turnover in the preceding financial year was fifty lakh rupees or below;

(ii) who is not eligible to pay tax under sub-section (1) of section 10 of the said Act ;

(iii) who is not engaged in making any supply which is not leviable to tax under the said Act ;

(iv) who is not engaged in making any inter-State outward supply;

(v) who is neither a casual taxable person nor a non-resident taxable person;

(vi) who is not engaged in making any supply through an electronic commerce operator who is required to collect tax at source under section 52; and

(vii) who is not engaged in making supplies of the goods, the description of which is specified in column (3) of the Annexure below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said annexure.