My customer is a composite dealer registered under GST having turnover of Rs. 25.00 Lacs in the previous year. During in the current year he had given his property on rent for commercial purpose for a rent of Rs. 2.40 Lacs per year. As the same is under 10% of his gross receipts whether he can continue in composition scheme if so, please kindly clarify the rate of tax to be paid in the above case.

Reply- As per CGST (Amendment) Act, 2018 (w.e.f. 01.04.2019) composition dealer (supplier of goods) may supply services of value not exceeding ten per cent of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher. Rate of tax (1%) will be applicable on sale of goods as well as on supply of services. Composition dealer cannot charge 18% GST on Rental income.