There is a dealer who is registered under GST as a composition dealer, selling goods. He has erected a commercial building for the purpose of renting it. Can he continue to be in composition and do his business and rent the property. Or does he has to convert into regular dealer for doing both business and service(renting).
If he can do this while being a composition dealer what would be the turnover limit applicable to him.
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Renting of commercial property in composition.
Replies (1)
1.Composit Scheme In term of Section 10(2A) availing scheme prescribed in vide Notification 2/2019 CT(R) , yes you can supply Intrastate supply goods or Services or both. But with few restriction ie 1.Agrregate Turnover in preceding FY did not Exceed 50 Lacs .
(Note : Require to pay 6% GST without ITC on turnover)
So under this scheme you can you can supply both the services & Goods but subject to conditions specified therein.
2. Of you are registered as composit dealer covering under Section 10 , you can supply services but only upto the value of 10% of Turnover in preceding FY or 5 lac rupees , whichever is Higher & the turnover limit under this scheme is 1.5 crore.
So if your turnover in preceding FY is of 90 Lacs , you can provide rental services upto 9 lac rupees .
So if you fulfills the above conditions can continue under composit scheme, but as it's my personal advise if you have a enough rental income you should Opt for Regular Scheme.
(Note : Require to pay 6% GST without ITC on turnover)
So under this scheme you can you can supply both the services & Goods but subject to conditions specified therein.
2. Of you are registered as composit dealer covering under Section 10 , you can supply services but only upto the value of 10% of Turnover in preceding FY or 5 lac rupees , whichever is Higher & the turnover limit under this scheme is 1.5 crore.
So if your turnover in preceding FY is of 90 Lacs , you can provide rental services upto 9 lac rupees .
So if you fulfills the above conditions can continue under composit scheme, but as it's my personal advise if you have a enough rental income you should Opt for Regular Scheme.
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