Composite scheme dealer for commercial rent receivable account

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This discussion clarifies GST implications for composite scheme dealers earning rental income from commercial properties. It explains that while a portion of service income is permitted under the composite scheme, exceeding specific turnover limits with rental income can affect eligibility. The advice covers paying 1% GST on rental income via CMP-08 and when to use DRC-03 for tax payments.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

21 May 2024 Sir,
A registered composite scheme dealer sales of trading goods 1 tax paid and rental income from commercial property rs:60,000/- receivable head show in itr f.y.22-23.
Question:
Dealer rental income gst tax applicable and drc-03 pay correct procedure.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)

22 May 2024 As per the CGST (Amendment) Act, 2018, a manufacturer or trader can now also supply services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be applicable from the 1st of Feb, 2019

if it croses the limit then you wont be eligible for 1% composition scheme

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Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

22 May 2024 rental income receivable treatment in itr return.doubt: rental income f.y.22-23 or f.y.23-24 show in gst returns

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

24 May 2024 pay tax @ 1% on rental income and show it in your CMP-08 unless you become ineligible for composition scheme on crossing the limit of Rs 5 lac or 10% of turnover whichever is higher.

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