24 January 2024
Facts : A Lady Doctor (Dentist) in Delhi stays at “X” Location and has gross annual receipts from her profession clinic in Delhi state at “Y” Location of Rs. 15 Lakhs. Apart from this, she receives rent of 24 Lakhs p.a. from letting on hire her commercial property in Uttar Pradesh.
Q: Whether she is liable to take registration under GST in Delhi (Location “X’ or “Y”) / Uttar Pradesh only / Both the states separately?
Q : Can she take registration in U.P state only and do all the compliances of GST without touching upon her clinic’s (Health Care Service) income from Delhi ?
07 July 2024
Based on the information provided, here are the responses to your questions regarding GST registration for the Lady Doctor:
### Question 1: GST Registration Requirements
**Location "X" (Delhi)**: - The Lady Doctor's gross annual receipts from her dental clinic in Delhi are Rs. 15 lakhs. - Health care services provided by a clinical establishment, including dental clinics, are exempt from GST under Schedule III of the CGST Act, 2017. - Since her annual turnover from health care services in Delhi is below the threshold limit for GST registration (Rs. 20 lakhs for businesses in most states), she is not required to register for GST in Delhi solely based on her dental clinic's turnover.
**Location "Y" (Uttar Pradesh)**: - The Lady Doctor receives Rs. 24 lakhs annually from renting out her commercial property in Uttar Pradesh. - Rental income from commercial properties is taxable under GST irrespective of the turnover threshold. - Therefore, she is required to register under GST in Uttar Pradesh due to her rental income exceeding the exemption limit.
### Conclusion for Question 1: - **Registration Requirement**: She must register for GST in Uttar Pradesh due to her rental income. - **GST Registration in Delhi**: Not required solely based on her dental clinic's turnover being exempt.
### Question 2: Compliance in Uttar Pradesh Only
- Yes, she can register under GST in Uttar Pradesh solely based on her rental income. - She can comply with GST requirements related to her rental income without touching upon her clinic's income from health care services in Delhi. - Since her health care services are exempt from GST and her turnover does not exceed the exemption limit in Delhi, she does not need to register or comply with GST for her clinic's income in Delhi.
### Summary: - The Lady Doctor should register for GST in Uttar Pradesh due to her rental income from commercial property exceeding the threshold. - She can manage her GST compliance for her rental income separately in Uttar Pradesh without needing to touch upon her dental clinic's income in Delhi, which is exempt from GST.
This approach ensures compliance with GST regulations while optimizing her registration based on the nature and location of her income streams.
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