Composition scheme applicable or not

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1936 Points Joined March 2007

A person is into business of retail trading of cloth. For 2016-17, sales are Rs. 18 lacs. He has earned rental income of Rs. 1.50 lacs and Rs. 60 thousands as interest in 2016-17. Whether he is required to take registration? If yes or if he wants to take voluntary registration, then can he opt for composition scheme? Please advise?  

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On 12 August 2017 at 10:53 Report
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CA Practice
3577 Points Joined September 2012
Registration is not mandatory as aggregate turnover does not exceed Rs. 20 Lakhs. Yes he can opt for composition scheme if he takes voluntary registration.
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On 12 August 2017 at 11:11
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1464 Points Joined June 2017
While calculating aggregate turnover you may avoid interest receipt as it is exempted service. So your aggregate turnover is below 20 lakh. It is at your option whether you go for registration or not.
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On 12 August 2017 at 11:21
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1464 Points Joined June 2017
Cont reading...
Now it is assumed that you go for registration. As renting is a service. For composition dealer it is bared. So you can not go in for composition scheme. How can composition dealer issue Tax Invoices for rent ?
So you can not opt for composition scheme.
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On 12 August 2017 at 11:27
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1936 Points Joined March 2007

A person in composition scheme has to pay different tax rates on sale of manufactured goods and traded goods?

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On 12 August 2017 at 13:27
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1464 Points Joined June 2017
It is 1% on Trading 2% on Manufacturing & 5% on restaurants.
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On 12 August 2017 at 15:53
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GST Consultant
15986 Points Joined March 2013

If you are both trader and manufacturer and are registered under composition scheme then GST will be paid @ 2% on all turnover

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On 12 August 2017 at 16:12
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1936 Points Joined March 2007
Originally posted by : CA Altamush Zafar
If you are both trader and manufacturer and are registered under composition scheme then GST will be paid @ 2% on all turnover

So no separate rates for sale of manufactured items and on sale of purchased goods.

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On 12 August 2017 at 19:46
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GST Consultant
15986 Points Joined March 2013
No. Because you will have to register yourself as manufacturer under composition scheme.
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On 12 August 2017 at 20:48
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Accounts
42 Points Joined July 2012
Which direct or indirect expenses on which RCM applicabe and what's the rate of gst in RCM
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On 29 April 2018 at 23:47


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