Sir/Mam, Mr. Ram is an insurance agent and receives insurance commission . Yearly commission is very less. He is also proprietor of a medicine shop. Query- The threshold limit for registration will be Rs 20 lacs or 40 lacs ?

2) I think Threshold limit will be 20 lacs because insurance commission is a outward supply for Mr. Ram on which insurance co. will pay under RCM . So, Insurance commission will be included in aggregate turnover OF MR. RAM . Am i right ?

3) Can we ignore the Insurance commission for Threshold limit and take Limit as 40 lacs as it is very less amount  ??

4)  Mr. Ram can also opt for Registration under composition scheme if aggregate turnover for the year is less than 1 crore as Composition threshold is 1 crore. Am i right ??

Frah Saeed Answered question September 3, 2020