• GST

Having sweet shop under gst .. and sell paneer also which is exempted under gst as a result i have to reverse itc on capital goods in proportion to sale pf paneer to sweets.. and itc be rverse span of five years which is very hectic to maintain... so whats the solution to it? Should i start charging 5 percent gst on paneer as branded paneer but iam not having registered trademark... would it be right to do so as exempted supply of mine be zero and then no reverse of itc.. doing this would be right?
Asked 5 months ago in GST from Rewari, Haryana

Hi

 

Its not advisable to charge gst on exempted supply.

 

Hope it helps 

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Charging tax on exempted supply wont save you from reversing the ITC on capital goods.

 

Even if you wrongly charge GST then also when GST department comes to know about it you will have to reverse ITC and they may also ask for interest then.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
2216 Answers
19 Consultations

5.0 on 5.0

Hi,

 

Charging GST on exempted supply leads to unnecessary trouble rather than solving your issue. You might have to pay interest amounts when the department issues notices. 

Navya Tejas
CA, Bangalore
45 Answers

Not rated

Hi,

 

Charging GST on exempted supply is not the solution.

 

You will have to reverse the ITC on capital goods.

 

 

Payal Chhajed
CA, Mumbai
3165 Answers
41 Consultations

5.0 on 5.0

Please call to discuss in length.

Vivek Kumar Arora
CA, Delhi
3162 Answers
162 Consultations

5.0 on 5.0

Hello,

 

It won't be a wise option to charge GST on exempted goods just to avoid reversal of input tax credit of capital goods.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Madhya Pradesh
1063 Answers
3 Consultations

5.0 on 5.0

Taxes should not be collected on the products which are absolutely exempted from the GST. It is not proper recluse not to reverse ITC just because it is cumbersome. Reversal of ITC will be required or else you may choose not to avail ITC at the beginning by taking a safe percentage let's say 5%, which may be approximately higher than your exempt sale percentage.

 

Should you need any help in respect of GST compliance, you may reach out to me.

 

 

Brijendra Tripathi
CA, Gurgaon
120 Answers
3 Consultations

5.0 on 5.0

It is better to charge GST on paneer and get it branded.

Vivek Kumar Arora
CA, Delhi
3162 Answers
162 Consultations

5.0 on 5.0

Apply for Trademark and then collect proper GST.

Naman Maloo
CA, Jaipur
2216 Answers
19 Consultations

5.0 on 5.0

Get registered trademark, make it branded and charge GST on it as branded paneer sales.

 

Hunny Badlani
CA, Madhya Pradesh
1063 Answers
3 Consultations

5.0 on 5.0

Apply for trademark and charge GST on paneer.

Payal Chhajed
CA, Mumbai
3165 Answers
41 Consultations

5.0 on 5.0

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