A person is running a medical shop in his proprietorship under GST composition scheme. Now he want to start providing diagnosis services to patients with medical shop activites. Since he is under GST composition scheme please guide weather such person is eligible for GST composition or not..? Thanks

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.