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about registration

12 July 2017

My friend Munish is manufacturer of sweets or you can say he has a sweet shop. His annual turnover is about Rs. 35,00,000. So it means he has to registered. But in this line labour and so much items of raw material come from unorganized sector (like:milk). So,who will be responsible for sevice tax on labour provide by his labourer .

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SUPRIYA (PRACTICE) (853 Points)
Replied 12 July 2017

W.e f. 1 July 2017, GST has replaced Service Tax.

So if your Sweet shop turnover during a financial year exceeds Rs 20 lakhs then registration must be obtained.

Composition scheme option is available for small dealers/ traders who have annual grregate turn over below Rs 75 Lakhs.

With regard to labour payment please clarify whether the labou are employed in your shop on monthly/ weekly fixed pay ( Salary) or they are hired on contract ( Contract labour) for specific job basis.

Services by an employee to the employer in the course of or in relation to his employment is not liable to GST - no payment of GST

But in case of job basis labour, you will be liable to pay GST on reverse charge basis in case they are unregistered.