gst for shopkeepers

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(Querist)
17 June 2017 I have this relative in a village in rajasthan. he has a generaln store or kirana store. he file ITR on presumptive basis with turnover of 40 lakh approx. currently he doesnt file any other return except itr. does he has anything tondo with gst? being a general store in village it is quite impractical to sell good on billing.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 June 2017 He can register under composition scheme turover limit is 75 lacs for which 1% GST payable on turnover no need to issue any bills.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 so it means he should pay 1% gst from his own pocket. is it fair?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 June 2017 Add it to the price .....................
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 i dont understand this
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 how can he collect tax without giving bill
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 he sells items asblow as 5 rs parle buscuit
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 what does composition scheme actually means. should the shopkeeper pay tax from his pocket or should collect tax from customers by issuing bills
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 June 2017 Under composition scheme GST is not collected separately. The seller has to fix his margin considering the GST of !% payable. In case of MRP items GST will be part of margin amount.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 but knows the price of a item then how can he collect more amount.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 eg- if a 10 rs. buscuit packet he is selling. he cant sell it for 11 rs
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 or if he sells it for 10 rs only then it means he will be paying gst from his pocket.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 June 2017 GST rate is 1% so far RS 10 GST payable is 10 paise only not 1 Rupee.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 yes. but how he will collect 10.10 rs from customer.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 even if sale is 100 rs. people dont pay 101 in rural areas.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 his total turnover is 40 lakhs. but being a general store his individual sales are like 3 rs.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 or 20 rs. or 36 rs.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 and people wont pay higher amount at ll bcoz the neighbor shops are not charging any gst.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 i think gst is just a curse for small shopkeepers or unorganised sector
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 June 2017 He has to consider his margin of profit including GST of 1%.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 sorry sir i dont getbit can u give meban example
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 June 2017 Suppose his profit margin is 10% and GST Payable is 1%, he has to fix his selling price buying price+11%.
If he buys a product for 89 adding profit margin and gst of 11 he has to sell it for 100.
In case of MRP items GST impact will be built in.
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 but the customer wont pay rs. 100 he will only pay rs. 99 bcoz the neighbor shops are not charging any tax
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Himanshu Goyal

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Himanshu Goyal (Querist)
17 June 2017 sir they are in organised sector. most of then dont comply with such provisions.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
17 June 2017 The impact on revenue will not be much on such dealers the govt will concentrate on Registered GST dealers of turnover more than 75 lacs.
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CA. RAGHAV GARG

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CA. RAGHAV GARG (Expert)
18 June 2017 yes.. if someone opt for composition scheme.. he have to pay gst out of his own pocket.. else he is free not to opt composition scheme, and take input and charge gst
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CA. RAGHAV GARG

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CA. RAGHAV GARG (Expert)
18 June 2017 moreover in current regime if someone habe not taken sales tax no because his sale is below taxable limit, he has to bear all taxes paid out of his own pocket..
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Himanshu Goyal

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Himanshu Goyal (Querist)
18 June 2017 so basically they will have to pay tax every time. they purchase any product for their own consumption
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Himanshu Goyal

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Himanshu Goyal (Querist)
18 June 2017 or fo their business
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Himanshu Goyal

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Himanshu Goyal (Querist)
18 June 2017 ir even if they sell anything they should pay gst 1% under composition.
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Himanshu Goyal

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Himanshu Goyal (Querist)
18 June 2017 then it only seems be curse
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CA. RAGHAV GARG

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CA. RAGHAV GARG (Expert)
18 June 2017 same do happened till today as well... if turnover less then 5lakhs, he donot charge any vat but with 6lakh turnover he had to pay tax and considering sale at mrp he have to bear tax out of his own pocket..

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