composition scheme + rent income

composition scheme + rent income

hello all
meine composition scheme li hui hai 55 lakh ka sales hai aur mere ko ek bulding se 1.25 lac per month rent feb 2018 se mil raha hai .... year mein rent 15 lac hoga to abhi bhi mere total turnover 75 lac se niche hi hai agre mein gst mein next year jata hu to mere pass input nahi hoga aur stock 25 lac ka baki aaayga .... 12% ka item hai mera pura 25 lac mein 12% 3 lac rupye to mere ko paid karne padege ...
qus 1 : kya mere ko rent mein gst dena padga ....
qus 2 : mein composition mein rent ko turnover mein le lu
qus 3 : vaise composition me turnover kitne tak hai ....
if mere ko gst mein reguler karna pada to ........
qus 4: mere ko 3 lac paid nahi karna pade uske liye kya karo (stock nil kar ke reguler kar sakte hai kya )

Asked 6 years ago in GST

Good Day Sir,

Here are the answer of your following Questions:

1. You are required to pay GST on rent, if your aggregate turnover exceeds from Rs.20Lakhs and in your case aggregate turnover exceeds from Rs.20Lakh

2. Rent is a part of service and service provider has not opt composition scheme, so in your case you are liable for taking registration in regular scheme

3. Composition scheme limit is Rs. 1.5cr., but in your you can't opt composition scheme, because you have income from rent also.

4. If you have any closing stock, and you switch from composition scheme to regular scheme, then you are eligible to take input tax credit by filing GST ITC-01

Shiv Kumar Agarwal

CA, Delhi

489 Answers

74 Consultations

5.0 on 5.0

Talk to Shiv Kumar Agarwal

Dear Sir,

Now turnover for Composition scheme is revised to Rs. 1 Crore. Rent will be included in the total turnover for GST but you can not avail composition scheme on rent.

I will suggest you to register as normal dealer and claim ITC of Rs. 3 lacs from conversion of composition scheme to normal dealer.

Receive rent in other entity and avail composition scheme for the trading business.

Thanks

Vivek Kumar Arora

CA, Delhi

Available Now

4845 Answers

1038 Consultations

5.0 on 5.0

Talk to Vivek Kumar Arora NOW!

Agar aap ek hi PAN me business and rental income show kar rahe h to apko GST registration Lena hoga. Aap composition me benefit nahi le paenge.

Turnover me sari sales and incomes include hoti h.. so rent bhi add karna hoga.

Abhi composition ki turnover limit 1 crore h.

Agar aap k pass stock rehta h jb aap composition se regular taxpayer me shift honge, to apko us stock ka ITC mil jaega.

Lakshita Bhandari

CA, Mumbai

5687 Answers

910 Consultations

5.0 on 5.0

Talk to Lakshita Bhandari

Hi,

Answers are as below:

1) As soon as you move out of composition scheme, you will be required to charge as well as pay GST on rent.

2) Rent will be considered as part of turnover for composition scheme. (Any taxable supply of goods and services shall be part of turnover for the purposes of calculating threshold of composition scheme.). However, since you will be having supplies of goods as well as services, you will no longer be eligible for composition scheme anyhow.

3) The limit is of Rs. 1.50 Crores (for manufactured or traded goods only). No composition scheme is applicable for service providers.

4) As soon as you will be out of composition scheme, you can recover the amount of GST from your customers. As of now, this seems to be the only way out or else you sell all the stocks before the end of financial year i.e. as you said, clear the existing stock and start afresh with new purchases and supplies.

I hope answers are clear.

Regards,