I am planning for Furniture Sale at Hyderabad. 1) Customer will see the Product online and pay advance if interested 2) Product will be bought in Kerala and shipped to Hyderabad. 3) Customer can choose to pay the balance to buy the product after seeing or ask for refund. Full refund will be given minus 5% admin fee. Please advice for the Taxes needed from the Supplier in Kerala and purchase in Hyderabad.
Hii
Good Morning ,
Hope you are doing well!!
in your case
1 you have to take GST Registration and open a Current Account
2 Purchase from GST Registered Dealers in Kerala ( with valid GST invoice having IGST) and sale in Hydrabad.
3 in case of refund you have to pay GST on amount retained as admin fee.
Hello,
GST and Income Tax would be involved.
GST would be applicable to you. You would be required to register under GST.
You will have to declare the advances received pending supply of goods at the end of the month and pay off the GST liability on it.
In case of a refund, GST would be applicable to the Admin Fee.
I hope that this answer satisfies your requirements. For further understanding or capital gain calculation, you can contact us directly at or take a phone consultation.
Regards,
CA Hunny Badlani
As you have said you are going to purchase furniture I am assuming you are going to start a business of selling furniture.
In such case are you selling on your personal website or on Flipkart, Amazon?
Are you planning to sell only in Hyderabad or all over India?
If you are planning to sell all over India then you need to compulsorily take GST registration and also pay income tax on such business income.
If you need detailed explanation we have a phone consultation.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi,
You need to take GST registration.
Also, you will have to pay the income tax on business income as per applicable slab rate.
Also, you can take the benefit of presumptive taxation scheme.
It is advisable to take a phone consultation for detailed discussion.
Hi
As far as income tax is concerned, the profits would be taxable as business income at applicable slab rates.
If you are based in Hyderabad and selling only in Hyderabad, you would not need a GST registration till your turnover exceeds Rs. 40 lacs.
The admin fee shall also be taxable.
There are various other aspects on such transactions. We may discuss the issues in detail over phone consultation.
Please let me know if what I learnt below here is correct. 1) If I pay GST to supplier of furniture from Kochi, I dont have to go for GST registration as log as Im selling only in Hyderabad (via my website, however purchase decision will be done after seeing the product) and as long my turnover does not exceed 40 lakhs. 2) As I have already paid GST to Supplier, do I have to still remit GST and do I charge GST to customer?
Point no. 1 is correct.
Point no. 2: GST you have paid to your supplier would become your cost and since you aren't registered under GST you can't charge any amount from your customer as GST.
Hii
you want to purchase from one state and sale in another state via online / offline this is called interstate transaction thus getting GST registration is mandatory even if turnover is below limits
2 in practical if you are paying gst on purchase and not collecting gst on sales then gst on purchase becomes your part of cost this will results in reduction of profit
1. Correct.
2. Since you're not registered under GST, you can't charge GST. GST paid to supplier becomes part of your cost.
1. Yes.
2. In case you are not registered under GST, you cannot charge GST from your customers and GST paid to your supplier on purchases would be your cost. Otherwise, if you register under GST, GST paid to your supplier on purchases would be available as a credit while remitting GST collected from your customers.
Hi,
1. Yes, your understanding is correct.
2. It would be treated as part of your cost.