sir, my client has traders, sell rice to people. now gst is liable or exempt?.
some one says rice is exempt you wil get affidavit, otherwise taxable. now I am trader gst is exempt or not sir?
pls clarify sir
23 Replies
Shivam RC
(Student)
(23683 Points)
Replied 06 June 2020
@ Srikumar Sir,
If the Rice is being sold under a Registered Brand Name ( like India Gate, Fortune etc ), then it is Taxable. The applicable Rate of GST is 5%.
However if no Brand Name is associated ( Non-Brand Items ), then it is EXEMPTED vide Notification No. 2/2017 - Central Tax ( Rate ), dated 28.06.2017. GST Not applicable. It's an Exempt Supply. Moreover as per the Provision of Section 23(1) of the CGST Act 2017, Person's dealing in Exclusive Supply of Exempt Goods are not liable to take GST Registration.
Regards,
Shivam RC.
If the Rice is being sold under a Registered Brand Name ( like India Gate, Fortune etc ), then it is Taxable. The applicable Rate of GST is 5%.
However if no Brand Name is associated ( Non-Brand Items ), then it is EXEMPTED vide Notification No. 2/2017 - Central Tax ( Rate ), dated 28.06.2017. GST Not applicable. It's an Exempt Supply. Moreover as per the Provision of Section 23(1) of the CGST Act 2017, Person's dealing in Exclusive Supply of Exempt Goods are not liable to take GST Registration.
Regards,
Shivam RC.
srikumar
(audit staff)
(1203 Points)
Replied 06 June 2020
He is trader, also sell other goods like milk, rice, organic foods
Shivam RC
(Student)
(23683 Points)
Replied 06 June 2020
Then if his Aggregate Turnover exceeds Rs. 40 lakhs ( assuming him to be dealing in EXCLUSIVE SUPPLY OF GOODS ), he has to opt for GST Registration. Aggregate Turnover includes both Exempt as well as Taxable Supplies.
Shivam RC
(Student)
(23683 Points)
Replied 06 June 2020
Then the Trader needs to collect GST on Goods supplied by him according to the GST Rates prescribed under Notification No. 1/2017 - Central Tax ( Rate ), dated 28th June 2017 as amended from time to time.
For Exempted Goods, he will not collect GST. He needs to issue Invoice cum Bill of Supply when both Taxable and Exempted Goods are supplied together.
As far as the Rice is concerned, as replied earlier if it is Branded Rice then GST @ 5% is applicable. If Non-Branded Rice, No GST applicable.
For Exempted Goods, he will not collect GST. He needs to issue Invoice cum Bill of Supply when both Taxable and Exempted Goods are supplied together.
As far as the Rice is concerned, as replied earlier if it is Branded Rice then GST @ 5% is applicable. If Non-Branded Rice, No GST applicable.
srikumar
(audit staff)
(1203 Points)
Replied 06 June 2020
Sales to end user i.e. public people by cash sales by raise invoice with gst and exempt goods also
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 07 June 2020
Unbranded Rice is Exempted in GST.
(Refer S.no.70 under Notification 2/2017 CT (R) )
(Refer S.no.70 under Notification 2/2017 CT (R) )
Shivam RC
(Student)
(23683 Points)
Replied 07 June 2020
Let's us understand the situation with the help of an example :
SAMPLE TAX INVOICE CUM BILL OF SUPPLY :
A2Z Traders
GSTIN : 19AANFN4054D1Z2
Date : 07.06.2020.
1). Unbranded Rice (5kg ) @ GST 0% = Rs. 150
2). Branded Rice ( say Fortune ) @ GST 5% = Rs. 250.
3). Branded Dal ( Tata Sampanna ) @ GST 5% = Rs. 140.
4). Pappad @ GST 0% = Rs. 50/-
Total Amount = Rs. 590/-
CGST @ 5% (say) = Rs. 50.
SGST @ 5% (say) = Rs. 50.
Understood Sir ???
For Taxable goods charge the applicable Rate of GST whereas for Exempt Goods, no GST will be charged.
SAMPLE TAX INVOICE CUM BILL OF SUPPLY :
A2Z Traders
GSTIN : 19AANFN4054D1Z2
Date : 07.06.2020.
1). Unbranded Rice (5kg ) @ GST 0% = Rs. 150
2). Branded Rice ( say Fortune ) @ GST 5% = Rs. 250.
3). Branded Dal ( Tata Sampanna ) @ GST 5% = Rs. 140.
4). Pappad @ GST 0% = Rs. 50/-
Total Amount = Rs. 590/-
CGST @ 5% (say) = Rs. 50.
SGST @ 5% (say) = Rs. 50.
Understood Sir ???
For Taxable goods charge the applicable Rate of GST whereas for Exempt Goods, no GST will be charged.
KRISSHNAN KP
(4215 Points)
Replied 07 June 2020
You need not collect GST and options under section 10 is fit for you
Recent Topics
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
Related Threads
CAclubindia
