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Rate of tax for service income (along with trading income) of a composite dealer

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mvramana

Student

290 Points Posted on 20 November 2020

Facts: 1. A retail trader opted for composition. 2. During the year 2019-20 he made a turnover of 45 Lakhs and Facts: 1. A retail trader opted for composition. 2. During the year 2019-20 he made a turnover of 45 Lakhs and paid 1% Gst. 3. At the time of filing income tax return auditor observed service income (commercial rents) of Rs. 1.50 Lakhs in books. (Less than 10% of turnover). Question : At what rate GST on service income is to be discharged? Options: a) 1% b) 6% c) Dealer shall not have opted for composition in this case as service income exists. Please advise. 10% of turnover). Question : At what rate GST on service income is to be discharged? Options:
a) 1% b) 6% c) Dealer shall not have opted for composition in this case as service income exists.

Please advise.

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Quick Summary

This discussion clarifies the GST rate applicable to service income, such as commercial rents, earned by a composite dealer. Even if a dealer has service income less than 10% of their total turnover, they can still opt for the composition scheme. The applicable GST rate for this service income under composition remains 1%, as per the CGST Amendment Act 2018.