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COMPOSITION SCHEME - GST RATE

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This query is : Resolved

Quick Summary

A trader operating under the GST composition scheme, paying 1% tax on sales, is seeking clarification on the applicable GST rate for commercial rental income. They understand the 1% rate applies to trading activities but are unsure if it extends to rental income, which is not considered trading. The query aims to determine whether the rental income should be taxed at 1% or a different rate, such as 6%.

Harika

Harika (Querist)
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03 January 2025 I AM A TRADER AND OPTED COMPOSITION SCHEME UNDER GST AND PAY TAX @1% ON SALES. I RECEIVED COMMERCIAL RENT ON WHICH I HAVE TO PAY GST. NOW MY QUESTION IS WHAT IS THE RATE FOR RENT RECEIVED ?? IS 6% OR 1%

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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03 January 2025 If you are a trader and registered under normal composition scheme tax rate is 1%.

Harika

Harika (Querist)
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06 January 2025 For trading it is 1% ok. my doubt is about Rate on Rental income ??
Rental income is not come under trading activity. So what is the rate for rental income under composition scheme

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