ONE OF MY CLIENT IS A COMPOSITION DEALER IN GST. HE IS ALSO A GOLD APPRAISER IN THE BANK. BANK PEOPLE ASK TO HIM PROVIDE GST NO FOR REFERENCES. NOW GOLD APPRAISER CHARGES IS LIABLE TO PAY GST. MY PROBLEM IS HE IS COMPOSITION DEALER AND PAYING @ 1% GST ON SALES ONLY. FROM THE APRIL 2021 TO SEP 2021 HE HAS PAY GST ON HIS SERVICES CHARGES. BECAUSE BANK PEOPLE CREDIT APPRAISER CHARGES INCLUDING WITH GST MEANS HIS COMMISSION IS 200+36 GST @ 18%= 236. SO GST COLLECTED FROM BANK CUSTOMER AND CREDIT HIS ACCOUNT. NOW HE HAS TO LIABLE TO PAY GST ON THAT. BUT HE IS A COMPOSITION DEALER. HOW HE CAN PAY GST @ 18% ON SERVICES.
PLEASE GUIDE ME HOW TO RESOLVE THIS PROBLEM HE HAS PAY GST ON ALL HIS OUTWARD SUPPLY AND SERVICE CHARGES
22 September 2021
Please note that a composition dealer may supply of services up to 10% of turnover in the preceding financial year or Rs.5 lakhs, whichever is higher. So the gold appraiser can continue to discharge his liability @ 1% on such appraiser charges by issuing Bill of Supply.
BUT PLEASE EXPLAIN CLEARLY BECAUSE HIS TOTAL SALES 1986700/- AND BANK APPRAISAL CHARGES RECEIVED IN THE BANK ACCOUNT 6,57,173/-. HOW CAN WE CONSIDER HIS TOTAL TURNOVER
BUT PLEASE EXPLAIN CLEARLY BECAUSE HIS TOTAL SALES 1986700/- AND BANK APPRAISAL CHARGES RECEIVED IN THE BANK ACCOUNT 6,57,173/-. HOW CAN WE CONSIDER HIS TOTAL TURNOVER
22 September 2021
His appraisal charges share is more than 30%, in that case, he is not eligible to be composition dealer. His supply of services should be 10% of total turnover of the preceding financial year. Assuming the total sales includes the appraisal charges.
SERVICE CHARGES ALONG WITH TDS DEDUCTED TOTAL RECEIPTS DISPLYED IN THE ACCOUNT 26AS INCOME TAX ACT. NOW HE HAS TO PAY COMPOSITION SUPPLY OF SERIVCES @ 6%. IS RIGHT.
22 September 2021
A service provider can opt for composition scheme by paying GST @ 6% (CGST 3% + SGST 3%) if the turnover in the preceding financial year is Rs.50 lakhs or below. At the same time a person who opted to pay tax under section 10(1) of CGST Act, under composition scheme, is not eligible to opt for this scheme.
HE IS ALREADY A COMPOSITION DEALER RETAILER PAYING @ 1% ON HIS SALES. NOW HE IS RECENTLY JOINED AS A APPRAISER. THEREFORE IS THE PROBLEM. SO INSPITE OF HIS TURNOVER WHATEVER IS NOW HE HAS RECEIVED APPRAISER INCOME FROM BANK IN THE SECOND QUARTER OF THIS YEAR JULY TO SEP ALONG WITH HIS SALES AND SUPPLY OF SERVICES HE HAS PAY GST ON THAT BOTH
22 September 2021
Since he had already opted for composition scheme @1%, he can't include the appraiser charges in the scheme as it exceeds the 10% limit. Also if he has to opt for composition scheme @ 6%, he shouldn't have opted for 1% scheme. As per my opinion, he ceases to be a composition dealer and needs to charge GST at normal rates for all his supplies.
CAclubindia
