• Switching to composition scheme

Dear Sir

We are a REGISTERED EDUCATION SOCIETY which is receiving rent from TENANTS of around Rs.55 lakhs annually. We are registered under GST and paying 18% GST on rental receipts charged to tenants. Along-with this we are also trading in goods with annual turnoverI of Rs.12 lakhs on which we are paying 12% GST on goods sold charged to customers. Both the activities are done in the same GST registration and they are within same state (Madhya Pradesh).

Our tenants are asking us to switch to composition scheme and pay 6% GST on rent. 

Kindly advise can we switch to "composition scheme" w.e.f 1.4.2020 ?
Asked 1 month ago in GST from Indore, Madhya Pradesh

No you cant take composition scheme as receipt of previous year should be below 50 lakh to take composition scheme.

Also if you take composition scheme you cant charge GST to your tenant you have to pay it out of your own pocket.


Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
2688 Answers
24 Consultations

5.0 on 5.0

Dear Sir,


Hope you are doing well !!


You can't take composition scheme.


Only service providers and suppliers of both goods and services up to a turnover of Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 per cent.


Payal Chhajed
CA, Mumbai
3730 Answers
50 Consultations

5.0 on 5.0



No, the society is not eligible for the composition scheme. There is a threshold limit of Rs. 50 Lakhs of aggregate annual turnover, which is exceeded by society.

I hope that this answer satisfies your requirements.



CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Madhya Pradesh
1587 Answers
5 Consultations

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No, you cannot opt for composition scheme as your annual turnover is more than 50 lacs. This is the applicable limit in case of composition scheme for service providers.

Lakshita Bhandari
CA, Mumbai
4255 Answers
239 Consultations

5.0 on 5.0

Hello Sir,


No, you can not switch to composition scheme as your last year turnover was more then 50 lakhs.


Karishma Chhajer
CA, Jodhpur
1522 Answers
11 Consultations

5.0 on 5.0

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