watch_later 18/01/18

Dear Sir,

If i get certain products made by a local skilled workers, for eg. A tailor (kurti)or carpenter(furniture) or an artist (painting) and sell the product online, how do i charge gst as these local skilled people do not have any gst registration. I have registered my gst no. How do i take input tax credit. Even if i dont want to take input tax credit, is that OK by charging gst on my finished product and submitting tax amount to the Govt.

2 Responses | Latest response: 18/01/18 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 18/01/18

Dont worry about GST registration of input services since rightly told by Pulkit RCM is deferred till March 2018. It is expected to defer still further. You need to pay GST on your sales only. Any purchase or expense for business purpose from registered dealer, you can take the input.

watch_later 18/01/18

GST registration is required if receipts cross 20 lakhs in a year (subject to other conditions), so your suppliers may not fall under this condition.

But since you are registered under GST, you need to follow GST rules and compliance.

You need to charge GST on whatever you sell at applicable rate.

Another rule is RCM (reverse charge mechanism) where you have to charge GST on purchase from unregistered person. But luckily as of now RCM is deferred till March 2018.

Post March, you have to charge GST on your expenses if they cross 5000 in a day. However you will be able to take input credit on these expenses.

As of now you have to charge GST on your product sales and pay tax to government.


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