Composite dealer turnovers all show in composite return

GST
1

A registered composite scheme dealer income detailes mentioned below show in it returns.
1.Sale of medicines turnover for pharmacy business rs:80 lacs yearly
2.Health service income sec 194jb Rs:30 lacs.
3.Rental income from shops rs:3,60,000/-
4.Agrilculture income rs:2 lacs yearly.
Doubt:
Dealer above mentioned income tax applicable on sale of medicines only or all incomes tax applicable in gst act.

2

Under the GST (Goods and Services Tax) Act, the tax implications vary depending on the nature of the income received by a registered composite scheme dealer. Here’s how each income type you mentioned is typically treated under GST:

  1. Sale of Medicines (Pharmacy Business):

    • This is the principal business activity of the composite scheme dealer.
    • GST is applicable on the sale of medicines. As a composite scheme dealer, you are required to charge GST on your sales at a prescribed rate (either 1%, 2%, or 5% depending on the category of goods).
    • You need to file GST returns and remit the GST collected to the government.

  2. Health Service Income (Sec 194JB):

    • Sec 194JB refers to the provisions under the Income Tax Act related to tax deduction at source (TDS) on certain income.
    • This income is likely outside the scope of GST as it relates to TDS provisions under income tax regulations, not GST.

  3. Rental Income from Shops:

    • Rental income is exempt from GST if it is from residential properties.
    • If the rental income is from commercial properties (shops), it may be subject to GST under the GST Act, depending on the aggregate turnover and registration threshold.

  4. Agriculture Income:

    • Agriculture income is exempt from GST. It is outside the scope of GST as per the provisions of the GST Act.

Conclusion:

  • GST Applicability:
    • GST is primarily applicable to the sale of medicines (pharmacy business) for the composite scheme dealer.
    • Rental income from shops may also attract GST if the threshold limits are crossed.
    • Health service income and agriculture income are generally outside the scope of GST, with health service income falling under income tax provisions.

Therefore, for your composite scheme dealer business:

  • GST is applicable primarily on the sale of medicines (pharmacy business turnover).
  • Rental income from shops may also be subject to GST if the threshold limits are exceeded.
  • Health service income and agriculture income are not subject to GST but may have implications under income tax laws.

It’s advisable to consult with a tax advisor or GST expert to ensure compliance with GST regulations based on your specific circumstances and income details.

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