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Multiple composition registration in family

Madhukar N Hiregange (Chartered Accountant) (39034 Points)

07 June 2018

X has 5 majors in his family. He also has all combinations X+ A, X + B, X+A+B.... and so on separate partnership firms. They have all got valid PAN registrations and consequently, all have got valid GST registrations as composition dealers. They have a common storage and inventory management system due to similar products. Then can they all enjoy upto 100 lakhs concessional rate of 1%?

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6 Replies

Vinod Babu (24191 Points)
Replied 07 June 2018

Yes. Now the limit is extended to 1.5 crore

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Sundararajan S (Final Student of ICAI) (1764 Points)
Replied 07 June 2018

Sir limit is 1crore only. Law has to be amended to make it 1.5 crore.

And reply to Honble' IDTC Chairman, sir to my knowledge, if they maintain separate books of accounts, it is apt.

Vinod Babu (24191 Points)
Replied 08 June 2018

Yes. You are right Mr sundararanjan sir. Limit 1.5 c is not ammended. Still it is not passed.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 08 June 2018

My Dear Mr Madhukar N Hiregange Sir...

Please give solution with Detailed answer from Your view and Explanation...

Thank You for the Posting of the Problem... 👍👍👍

Sundararajan S (Final Student of ICAI) (1764 Points)
Replied 08 June 2018

Logically speaking, while getting registered, they can give separate principal place of business, and they may have a common godown or warehouse as additional place of business. Rent for such a godown may be shared by all such registered taxable persons or if it is an owned premises also it is viable. But however, if one of the registered persons is owner, then that particular person cannot be under composition scheme u/s 10 as such person will be provider of service as well.