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09 July 2017

I set my shop in a rural area, where I sell goods of Kirana ,fruits, vegetables,sweets and cold drinks also. My annual turnover is about Rs. 25 lacs. In this figure both taxable and non taxable under
gst are included, what should I do whether take registration for GST or not.

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24 Replies

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 09 July 2017

yes ...you are required to take registration if your aggregate turnover (taxable + noon taxable) is above rs 20 lakh.

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Rounak Varshney (Business) (276 Points)
Replied 09 July 2017

you can also opt for composition scheme

Rounak Varshney (Business) (276 Points)
Replied 09 July 2017

you can also opt for composition scheme

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 09 July 2017

he can opt for composition but if significant part of his turnover is exempted or non taxable goods than taking co me position scheme will not be wise because he has to pay tax on both exempted as well as taxable goods, if he opt for composition.

Rounak Varshney (Business) (276 Points)
Replied 09 July 2017

yes ,you are right but mr. rajesh did not speaks about how much portion of sale is exempted and taxable. As he said he open his shop in rural area and his turnover is 25 lakhs.if he opt for composition scheme he is not required to issue tax invoice, relaxation from monthly return filing, relief from maintaining proper records.
If he opt for normal scheme, he will have to appoint regular accountant, regular invoice uploading, also poor internet facility in our rural areas.
Although he is not able to take ITC but keeping in mind all these points, opting for composition scheme and paying tax @ 2% is more beneficial.

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CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 09 July 2017

first of all composition tax is 1%......2nd he has kirana store which means a large part for his sale is exempted.......3rd he is not making business to business supply, hence even is he chose regular scheme than also compliance are not too much......4th margin in kirana store is always low and in low margin if you chose composition scheme it will be expensive (do the math).....
The only benefit of taking composition scheme is he will have to file quarterly return...and have no need to maintain detailed stock (but still have to maintain stock register)....

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 09 July 2017

my father also have composition registration......government is saying that composition dealer do not have to do much compliance....but reality is that we have to do all the things which regular dealers do except return filling....

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CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 09 July 2017

we have to make all accounts.....have to maintain stock register.......have to maintain cash register daily basis......

Rounak Varshney (Business) (276 Points)
Replied 09 July 2017

yes it is 1% it is written mistake. you are wrong lots of items in kirana store are taxable soap paste cold drinks , namkeen ketchup lots of items are taxable and they all have different rates too remembering all the rates is slightly difficult.
if he opts for normal scheme he has to appoint accountant also which will take 10k-15k pm also he has a shop in rural area he might face poor net connectivity.
I have lot of clients who are kirana walas they are all opting composition scheme they are all happy

Rounak Varshney (Business) (276 Points)
Replied 09 July 2017

I already do all cost benefit analysis and keeping in mind all points that's why I said for composition scheme

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Rounak Varshney (Business) (276 Points)
Replied 09 July 2017

I think you need to recheck your calculation and then tell.

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 09 July 2017

I am not saying whether he should opt for regular or composition......I am just saying one should do cost - benefit analysis.....in this particular case I don't think he will need to hire any accountant.....since his turnover is b2c, he don't have to submit invoice wise detail....he just has to submit

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 09 July 2017

he just has to submit total turnover.......other forms will be auto populated.....he just has to remember to click submit button of different form.........and if that saves his money in taxes than it is worthwhile.......

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 09 July 2017

and about the connectivity...of one is using this app that means he at least have a smart phone with internet....and thats all you need to submit gst returns.....