banner_ad

Renting of commercial property in composition.

1480 views 1 replies
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.
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.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details