I am running my medical store business under composition scheme as per GST Law . Now due to death of my family member I will join the diagnostic center also Now my query is :- Because of exempted service of diagnostic center whether I should carry my business under the same scheme or we should change the schema in regular gst ? Does any GST liability raise on me under the GST Liability although the diagnostic center is exempted.

Reply—As per CGST (Amendment) Act, 2018 (w.e.f. 01.04.2019) composition dealer (supplier of goods) may supply services of value not exceeding ten percent of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher. Rate of tax (1%) will be applicable on sale of goods as well as on supply of services.

However, if the value of supply of service will be more than 10% of turnover and the value of such service also exceeding Rs. 5 lakhs, the taxpayer would not be able to continue his registration as a composition dealer under section 10(1) of CGST Act. It does not matter nature of service is exempt or taxable.