GST Registration - Threshold Limit and Applicability

[Jaykumar Pokharna]

Q. Is GST Registration Applicable?

1. If Retail Trader having Annual Turnover against sale of Taxable goods below 40 Lakhs but receives Shop Rental Income Rs 24000 Annually (Showing in Income Head - Income from House Property)
2. If Retail Trader having Annual Turnover against sale of Tax Free goods below 40 Lakhs but receives Shop Rental Income Rs 24000 Annually (Showing in Income Head - Income from House Property)
3. If Retail Trader having Annual Turnover against sale of Taxable goods below 40 Lakhs but receives House RentalIncome Rs 24000 Annually (Showing in Income Head - Income from House Property)
4. If Retail Trader Having Annual Turnover against sale of Taxable goods below 40 Lakhs but receives nominal UPI Commission or GooglePay / PhonePay Rewards or Commission Rs 12.00 (Showing in Income Head - Income from Other Sources)
5. If Retail Trader Having Annual Turnover against sale of Tax Free goods below 40 Lakhs but receives nominal UPI Commission or GooglePay / PhonePay Rewards or Commission Rs 12.00 (Showing in Income Head - Income from Other Sources)

[Shilpi Jain]

The provision for registration is clear that the 40L limit given in certain States is applicable only for exclusive supply of goods.

So accordingly the requirement of registration seems to attract in all cases above assuming that the turnover exceeds 20L. Composition scheme maybe evaluated.

[Lakshya Goyal]

In my opinion,

1st and 2nd attract registration liability as shop rental income can be considered as in course or furtherance of business.

3rd case, House Rental Income is in personal capacity, so not a supply. Hence, no registration required.

4th and 5th case, commission can be treated as reduction in charges charged by PhonePe, if any. If no charges are charged by PhonePe then liable to registration.

[Shilpi Jain]

Agree that if the last 2 are in the nature of rewards can be treated as a discount and will not attract registration.

[Shilpi Jain]

W.r.t. rental income - even if in personal name the property is, it will get covered under the proprietor registration itself. Unless the person talked off in the query is other than an individual or a proprietor.

[KASTURI SETHI]

Reply to Query No. 1 : Threshold limit of Rs. twenty Lakhs only is admissible. Both supplies will be clubbed. If turnover of both supplies exceeds twenty lakh in a financial year, registration is required.

Reply to Query No. 2 : Threshold limit of Rs. twenty Lakhs only isadmissible. The turnover of exempt supply is to be included in the aggregate turnover to arrive at threshold limit of Rs. twenty lakhs.

Reply to Query No. 3 : Threshold limit of Rs. twenty Lakhs only isadmissible. The turnover of exempt supply is to be included in the aggregate turnover to arrive at threshold limit of Rs. twenty lakhs.

Reply to Query No. 4 : Both supplies are to be clubbed. Threshold limit of Rs. twenty Lakhs only isadmissible. The turnover of exempt supply is to be included in the aggregate turnover to arrive at threshold limit of Rs. twenty lakhs.

Reply to Query No. 5 : Both supplies are to be clubbed. Threshold limit of Rs. twenty Lakhs only isadmissible. The turnover of exempt supply is to be included in the aggregate turnover to arrive at threshold limit of Rs. twenty lakhs.

The term, 'tax-free' stands for exempt supply and exempt supply includes non-taxable supply in terms of Section 2 (47) of CGST Act.

AI Summary

Debate on GST Registration for Retailers: Impact of Additional Incomes like Shop Rental and UPI Commissions. A discussion on GST registration applicability for retail traders with annual turnovers below 40 lakhs and additional incomes such as shop rental, house rental, and UPI commissions. Contributors debated whether these additional incomes necessitate GST registration. It was noted that registration might be required if the turnover exceeds 20 lakhs, considering both taxable and exempt supplies. Shop rental income is seen as business-related, potentially attracting registration, while personal house rental income may not. UPI commissions, if treated as rewards, might not require registration. The consensus emphasized evaluating the composition scheme and aggregate turnover for precise compliance.