The correct answer is: B. No
A registered person cannot opt for composition scheme only for one out of his 5 business different units having same Permanent Account Number.
The composition scheme is a simplified tax regime for small businesses. Under the composition scheme, businesses are required to pay a
fixed percentage of their turnover as tax, instead of the regular GST rates.To be eligible for the composition scheme, a business must meet certain conditions, including:
- The business must be a registered person.
- The business must have an annual turnover of up to Rs. 1.5 crore.
- The business must not be engaged in the manufacture of goods or provision of services that are specified in the negative list.
- The business must not have any input tax credit.
If a business meets all of the above conditions, it can opt for the composition scheme. However, the business must opt for the composition scheme for all of its units. It cannot opt for the composition scheme for only one unit.
The reason for this is that the composition scheme is a simplified tax regime. It is designed to make it easier for small businesses to comply with GST. If a business could opt for the composition scheme for only one unit, it would be able to benefit from the simplified tax regime without having to comply with all of the conditions for the composition scheme. This would not be fair to other businesses that are not eligible for the composition scheme.
Therefore, the answer to the question is: B. No. A registered person cannot opt for composition scheme only for one out of his 5 business different units having same Permanent Account Number.