Q. I have grocery shop in Delhi and my gross turnover is Rs.15 lakh. Am I required to be registered under GST law?.

Ans. No, you are not required to be registered under GST law since your gross turnover is less than Rs.20 lakh. It is presumed that your turnover does not include any sale out of Delhi.

Q. I am dealing in milk and fresh vegitable. My turnover is Rs.40 lakh. Should I get registered under GST law?

Ans. No, since you are dealing in tax free items, there is not need to register yourself under GST law. However, if your sale includes any taxable item then you have to register under GST law.

Q. I have a grocery shop in Delhi and my gross turnover is Rs.60 lakh. Am I eligible for composition scheme under GST law?.

Ans. Yes can opt for composition scheme subject to following conditions:-

  • You have to get registered under GST.
  • Your gross turnover should not be more than Rs.75 lakh.
  • Composition scheme is not applicable in case of sale of petroleum crude, high speed diesel, motor spirits, natural gas, aviation turbine fuel and alcohol for human consumption.
  • You can not make any Inter-State supply. It means you can not sell the goods out of Delhi in your case.

Q. What is rate of GST under composition scheme?

Ans.GST rates under composition schemes will be as follows under GST law:-

  • 2% GST in case of manufacturer
  • 5% in case persons making supply of foods or any other article for human consumption or any drink other than alcoholic liquor for human consumption i.e. hotels or restaurants.
  • 1% in case other dealers.

Q. I am providing courier services. My gross turnover is Rs.8 lakh. Am I exempted from GST.

Ans. Yes, you are exempted from GST because any person who is providing taxable services, is supposed to be registered und GST law if his turnover exceeds Rs.20 lakh. (10 lakh in case of North Eastern States and Hill States).  If you are providing any taxable services out of state then also you are supposed to be registered under GST law irrespective of any turnover.

Q. Can a composition dealer make inter-state purchase or inter-state sale?

Ans. A dealer who is covered under composition scheme can purchase goods from other states but can not supply the goods to other states.

Q. I have opted composition scheme under GST law. Can I claim the Input Credit?. What about the stock lying as on 30.06.17?

Ans. No you can not claim Input Credit. You only have to charge GST at the applicable rate. Regarding stock lying as on 30.06.17, please make sure that it should not contain any stock which is being purchased from other states or from any unregistered dealer. If so, then you have to deposit the tax under Reverse Charge.

Q. Whether a person registered in multiple states can opt for payment of composition levy in respect of one state?

Ans. No, a person who is registered in multiple states under same Permanent Account Number (PAN) can not opt for composition scheme or pick and choose on a state to state basis.

Q. What happens if gross turnover of a composition dealer exceeds the allowed limit for composition scheme?

Ans. At present the gross turnover for composition scheme is Rs.75 lakh. If his turnover exceeds Rs.75 lakh during the financial year, in such case, permission granted for payment of composition levy in lieu of taxes shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds Rs.75 lakh.

Q. I have purchased a residential flat and registry of the same is to be done in the month of July’2017. What will be the effect of GST in my case?

Ans. The registration fees of house is not covered by GST. Therefore, there is no change in registration fees structure. You have to pay registration charges according to the applicability in your area.

Q. I am the exporter of taxable item under GST. Will i have to pay GST on export sales?

Ans. There are two options for you. First, you pay the tax and then claim refund. Secondly, do not pay tax with an undertaking and claim the Input Credit.

Q. I have giving my house on rent. Shall I have to pay any GST?

Ans. There is no GST if you have given the house on rent for personal residence purpose. If you give any portion of your residential building to any person for commercial use then you have to pay GST @ 18%.

Q. I am Delhi based registered dealer under GST but I want to do business in Haryana and Punjab. Can I do the business with the registration of Delhi only or I have to get registered myself in Haryana and Punjab also?

Ans. If you have the business in other states then you have to get registered under those states also separately. Therefore in your case, you have to be registered under GST law in Haryana and Punjab separately.

Q. I am Delhi based registered dealer under GST.  I have to  purchase the taxable goods from other states and to sell it in Delhi. I am paying GST on the purchased goods. Should I pay the GST again on sale of goods?

Ans. You have to pay the GST only on your purchase. When you sell the goods and charge GST on sale value, you can adjust the Input Credit against the GST collected by you from the customer.

Q. What is reverse charge? I am a registered dealer under GST. If I purchase the taxable goods from an unregistered dealer then what will be my liability?

Ans. Under reverse charge, the registered person who purchases the taxable material or services from unregistered person, is liable to pay GST. Later on, he can claim Input Credit of the GST paid by him.