Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Two Business Units - One With GST and another Without

1061 views

Save Share

Ch. Sai Sudha Mohan

Income Tax Practitioner

241 Points Posted on 30 November 2021

A persons is proprietor for two business A & B. Turnover of Business A is Rs. 45,00,000/- and hence he has taken GST Registration for the same. But turnover of Business B is only 10,00,000/- which is below the threshold limit for GST.

Should he, include the Turnover of B also in his GST Returns and pay tax or is it sufficient, if he pays GST on Business A Turnover.

and for Income Tax Purpose, he declares income @ 6% on turnovers of both business A and B.

Replies (2)

Quick Summary

If you own two businesses under the same PAN, even if one is below the GST threshold, you must declare both under GST. This means you'll need to pay GST on the combined turnover of both businesses, as they are considered a single entity for GST purposes.