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Contract receipt and exempted sales

MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)

06 August 2023

SIR,

A PERSON DOING LABOUR CONTRACT AND ALSO DECLARED T.O IN GST 2,00,000/- (ONLY JUNE 22 TAKEN GST) CAN I ADD TO THE GST TURNOVER AND EXEMPTED GOODS SALES IN HIS INCOMETAX TURNOVER FOR 2500000/- WITH 44AD 8%. PROFIT?

BECAUSE HIS GST TURONVER ONLY 2 LAKHS.

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4 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 August 2023

Please give some clarity...

Like His GST TO 2 lakhs then 23 lakhs TO before GST... Right...???

Or

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MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
Replied 06 August 2023

Actually his GST TO only 2 lakhs for the f.year 2022-23 ,Also he was an agriculturist , Can I add 17 lakhs as Exempted TO and Total for 19 lakhs in Incometax ,also inform them to declare the GSTR 9 for the 17 lakhs as exempted ?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 August 2023

Please define the Agriculture income as per below...

Is GST Applicable for Agriculture?

According to the GST Act, only an agriculturist, to the extent of supply of produce out of cultivation of land is exempt from GST registration requirement. Further, the Act goes on to define an agriculturist as an individual or a Hindu Undivided Family who undertakes cultivation of land:

By own labour

By the labour of family

By servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family.

Hence, only small agriculturist would be exempt from GST compliance. Any person who operates a company or LLP or any other type of entity for the purpose of undertaking agriculture would be required to obtain GST registration if the aggregate turnover criteria or other GST registration criteria is satisfied and they sell goods that attract GST.

If the agri income define as above then no need show the amount in GST Turn Over.

In case it's other than above then show the amount under GST Exempted Turn Over...

(on first query you say 25 lakhs. why?)

MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
Replied 07 August 2023

He doing purchase and sale of paddy, coconut and oil seeds sir. His gst is not included this so far, Now we have to add these goods and disclosed as total turonver of Rs.25 lakhs and file in gstr 9 annual turonver also in Incometax