GST on Composition scheme & tax implication

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This query is : Resolved

PRAMOD NAYAK (Querist)

07 March 2022 Dear Sir,
One Individual has two kind of business like Manufacturing & Trading in Manufacturing. In order to avoid difficulty in business he want to split business in two categories like Manufacturing & Trading Business. Trading Business is regular business which depends on other for buying goods outside & internally.

My Query is follows.
1.Proprietor want to get registered under Composition Scheme under GST wef from April 2022 onwards then is it possible to get registered under new name.
2.If yes then formalities required to start the Manufacturing the new business.
3. What is the impact on GST on receiving goods from the receiver / new manufacturer?
4.From Income Tax angle Composition dealer has to maintain books of account as usual manner like Manufacturing account , Profit & Loss account, Balance Sheet etc?
5.Books of account are to be maintained by the Composition dealer as usual manner or it is not required if so.
6.If manpower is more than 20 in manufacturing unit then PF ESI rule applicable or not.
7.As most of the employee are coming under Unskilled & comfortable under non cheque pay roll method & the figure is more than 10 K per month then is it possible to make them payment on monthly basis?
Please reply my queries at an earliest.
Thanks & regards
Pramod Nayak

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 March 2022 1 Both the business has to be registered under composition scheme if combined turnover less than 1.50 crore.
In case of turnover more than 1.5 crore start a partnership with your wife as parner for manufacturing.
2 Reply given above.
3 No GST within the state in case of single PAN prop.
4 yes.
5 Books of accounts to be maintained.
6 Pf and esi rule applicable.
7 Pay fortnightly.

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