According to the provisions of the Goods and Services Tax (GST) Act, a person engaged in making supplies of exempt goods is not eligible for the composition scheme under sub-sections (1) and (2) of section 10.

The composition scheme is designed for small businesses with a turnover below a certain threshold to simplify their compliance requirements. It allows them to pay a fixed percentage of their turnover as tax and reduces the burden of maintaining detailed records and filing regular returns.

However, the composition scheme is not applicable to businesses engaged in the supply of exempt goods. Exempt goods are those that are specifically exempted from GST by way of a notification. In this case, product ‘Q’ is exempted by way of a notification in the State of Maharashtra.

Since Sultan & Sons is a wholesaler of both taxable product ‘P’ and exempt product ‘Q’, it cannot opt for the composition scheme. The accountant’s view is correct in this regard.

It is important for the firm to understand the implications of the composition scheme and comply with the applicable provisions of the GST Act. They may need to explore other options for simplifying their compliance requirements or consult with a tax professional for further guidance.