Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Gst mature for registration_Urgent

25 May 2021

hi
my business is like purchase from farmers & other small producer and I will store it in godown

later

when if any customer will order I will deliver to him

and I will charge delivery

my doubt is
what is the nature of my business for get registration under gst

Reply
Follow
Share

4 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 25 May 2021

Such renting of warehouses by agencies engaged in providing storage and warehousing services is liable to GST under a reverse charge at the rate of 18 per cent. The GST paid thus is not eligible for input tax credit (ITC), as the corresponding outward supply of warehousing service is exempted from GST.

Upgrade to CAclubindia Pro. Subscribe Now!

Sivaramaraju G (Learner) (2398 Points)
Replied 25 May 2021

@ sourav as per my understanding he is not providing warehousing facility to any one. he is directly purchasing and selling outside. he is just do trading/whole sale business.
GST rate depends on what kind product he is dealing.

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 25 May 2021

But this is the case of warehousing in godown

Mujeeb Doi (309 Points)
Replied 26 May 2021

I think @ rajanikanth should provide clarification as to apart from delievery charge what are the other avenues of revenue?
Because, apart from delievery charges, it might be mere renting where the consideration for goods will be collected on behalf of farmers or else normal trading business be it wholesale or retail.
kindly provide these clarifications @ Rajanikanth