• At when I have to pay GST

R/Sir,
According to composition scheme for Used Car Dealers, When I have to pay the GST tax., If I cross the turnover Rs.20,00,000/- [Rupees Twenty Lacs Only] or When I earned profit above Rs.20,00,000/-
[ Rupees Twenty Lacs Only ]
And another one question is What is penalty & interest structure for not filing GST return & what is the procedure for cancelled GST no. for not filing GST ?
Please Sir seeking your favourable guidence.
Asked 4 years ago in GST

Sir,

GST is an indirect tax leviable on turnover limit. Hence you have to start paying GST after it crosses 20 lakhs limit. 

Penalty fir non filling of Gst return is 50 per day. 

Interest for non payment of GST is @18%. 

Last question is not clear

 

Vidya Jain
CA, Kolkata
1008 Answers
58 Consultations

4.8 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

GST is leviable only if aggregate turnover is more than 20 lacs.

For computing aggregate supplies turnover of all supplies made by you would be added.

 

The fee for late filing of the returns is Rs 25 per day for Central GST (CGST) and an equal amount under State GST (SGST) i.e. Rs 50 per day.

If you opt to cancel your registration, you need to apply for it on the GST Common Portal. You must do this within 30 days of the event which made you cancel your registration. You will need data of stock held on the date and the quantum of dues of payments and credit reversal, and the particulars of payments made.

After you apply for cancellation, the Proper Officer will review your application. Once he is satisfied with it, he will cancel the registration within 30 days from the date of application or the date of reply to notice.

 

It is advisable to take a phone consultation for detailed discussion.

 

 

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Sale of used car business is a tricky business under GST.

There are different views of people on this but I am of the view that for calculating turnover for registration it would be only sale amount and for paying GST the turnover would be net of sale less purchase as was guided by various notification and this notification only clarified on calculation of amount for paying GST hence people are of opinion that for registration the turnover amount only means sale amount.

For late filing of GST the fee would be Rs. 50 per day for GSTR 3B.

Interest would be 18% p.a.

If you wish to cancel GST number you can do that by filing an application online.

 

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
4265 Answers
96 Consultations

5.0 on 5.0

If you aren't registering the vehicle on your name it means you are just selling it on commission basis and hence you need to take registration once your commission amount exceeds 20 lakh.

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

in the given case, it will be in the margin time difference assuming you.record margin as the only income in your books instead of showing sales and purchase 

Vidya Jain
CA, Kolkata
1008 Answers
58 Consultations

4.8 on 5.0

Hello,

 

GST registration, in a normal scenario, is mandatory if your aggregate turnover exceeds Rs. 20 Lakhs.

But in your case, since you are dealing in second hand used goods, the value of supply would be the difference between the selling price and the purchase price. Likewise, your aggregate turnover would be aggregate of margins of the supplies in a year.

A penalty of Rs. 50 per day is levied for late filing of GST returns and Interest at 18% per annum is levied for late payment of GST.

 

I hope that this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

There is no such condition that the second hands goods must be registered in the name of the dealer. You can avail the benefits of Valuation Rule 6(5).

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

1. If your business model is just being a mediator & car does not get registered in your name (being a middle man) than it wont count as part of your turnover.

What will be part of Turnover??

Ans: Only the fees charged by you will count in Turnover. So kindly sum up the fees & if it exceeds Rs 40 lac then only go for registration.

There is a concept of pure agent, it will apply only in case if you put forward invoice to the purchaser of car from you ( invoice specifically shows that X amount you are collecting on behalf of original car owner & you will reimburse it to original car owner. Then also such amt wont get counted in part of your turnover)

 

2. If your Income is not on basis of commission & you buy the car at x price & sell at y price without both the parties knowing at what price the other purchase or sell you are doing. Then department may include whole of the amount which you are taking in your bank account as part of your Turnover.

 

 

Question which tax rate is applicable to you. ??

Ans. 1% & 6% is basically a composition scheme for traders & service providers where you pay flat 1 or 6% of your turnover & get no itc. ( least complaince required)

1% is for those whose work is primarily trading & involves no service component. ( Now post your buynig of car if you are also doing repairing & up gradation work & then you are selling, in that case since service component is involved you need to opt for 6% -service composition. If it pure buying & selling without any service component than it will be straight forward 1% composition.

 

Second option : Opt for regular scheme where you pay the taxes at 18% of your turnover value & can claim the credit for the input.

Chirag Maru
CA, Raipur
210 Answers

5.0 on 5.0

It would be margin amount.

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Hi,

 

GST is leviable only if aggregate turnover (in your case the profit part) is more than 20 lacs.

 

The fee for late filing of the returns is Rs 50 per day.

 

Further, since you are not registering vehicle in your name, there is a possibility that department can consider you as an intermediary and in an intermediary is mandatorily required to take registration irrespective of the turnover. It is strongly recommended that you maintain sufficient documents to prove that you are buying and selling the cars on your own account and not as an intermediary.

Lakshita Bhandari
CA, Mumbai
5687 Answers
908 Consultations

5.0 on 5.0

- It is the profit which would be considered for GST registration.

- Interest is 18% and 24% depending on nature of default. Late fees is Rs.50 per day for Non-NIL return and Rs.20 per day for NIL return.

- If you do not file the return continuously, department will issue SCN for cancellation of GST.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1030 Consultations

5.0 on 5.0

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