Registration - 2 questions

YES U R RIGHT !

A person dealing with 100 per cent exempted supply is not liable to register irrespective of turnover.

There is nothing specified for Composition dealer as taxable or exempt goods so probably he is not allowed to make exmpted inter state sale since its just specified that inter state supply not allowed guess which includes taxable and exempt goods.

No. as referred in second para.

Dear Ruchika

i dont agree with your third part of reply as in section 10 only interstate supply of goods is prohibited and not of services.

regards

shivani

Originally posted by : Shivani
	Dear Ruchika i dont agree with your third part of reply as in section 10 only interstate supply of goods is prohibited and not of services. regards shivani

Point to be noted.

Originally posted by : Shivani
	Question 1 If an unregistered person makes inter-state supply of exempt goods or nil-rated goods, does he need to register? In my opinion No because section 24 talks about compulsory registration only in case of inter-state taxable supply.   Question 2 Can a composite person make inter-state supply of exempted or nil-rated GOODS? In my opinion No.   Question 3 Can a restaurant registered as Composite Person make inter-state supply of SERVICES? In my opinion, YES   Please confirm whether am i right? regards shivani

Ans 3) Yes he can make inter-state supply, but practically it is not possible. So a composite dealer cannot make inter-state supply of restaurant service also.

Hi shivam

how is it not practically possible?

A restaurant owner in Chandigarh (UT) can easily supply deliver goods to a home in Mohali (Punjab).

Regards

shivani

Sorry I would like to counter my own point. A restaurant cannot make inter-state supply of service as per section 7(3) and section 12(4) of IGST Act. Even if he delivers from Chandigarh to Mohali i.e. from 1 state to another it will not be regarded as inter-state supply and  he will discharge CGST & SGST. 

HI shivam

(4) The place of supply of restaurant and catering services, personal grooming, fitness,
beauty treatment, health service including cosmetic and plastic surgery shall be the location
where the services are actually performed.

A restaurant cooks meal in restaruant kitchen and gives home delivery to a customer.

Question is where service is perfomed.

So when the meal is ready in kitchen, can we say that the service provider has performed his service?

or when the meal is delivered at customer's home shall we say that service provider has performed his service?

as a customer when will u consider that you received the service?

i am tilting towards the latter.

and will say that it will attract IGST.

regards

shivani

Restaurant service includes cooking, serving, packing of food etc. Delivery service provided is in addition to restaurant service and is naturally bundled in the ordinary course of business. Thus we can say that restaurant+delivery forms a composite supply where principal supply is restaurant service. So service is actually performed in restaurant itself. Thus CGST and SGST is to be charged.

Moreover in GSTR-4 return( for composite dealers) you will see there is no column for IGST payable on outward supply because the intention of the law is not to allow a composite dealer make inter-state supply.

the law doesnt prohibit composite person to make interstate supply of services.

only interstate supply of goods is prohibited if he wants to remain in composition scheme.

however your argument of composite supply also carry weight.

i will check the GSTR-4 of the restaurant (service provider) and then put the issue to rest if it doesnt contain IGST column.

the lawmakers should have entered the words services also.

when they dont enter teh word services it clearly means that composite person (service provider) can make inter state supply of services.

but then when one reads place of supply, you are like da ........ !

regards

shivani