My wife is running a sweet shop cum restaurant from two adjoing rented shops.She is running the business under COMPOSITION SCHEME. The rent for each shop is Rs.57,500/-. One of the owner is having an annual inome of more than Rs.20,00,000/- (RUPEES TWENTY LACS) and he issues her a a bill for rent and charges 18% as GST on service. The second owner is having an annual income of LESS than Rs.Twenty lacs and issues her a bill for rent only.
Now is she supposed to do REVERSE CALCULATIONS OF GST ON SERVICE on the bill of Rs.57,500/- from the second owner. She being a COMPOSITION DEALER cannot take credit for the GST on service as the second service provider does not come under GST law.
CAclubindia
