Question

Audrey is a talented artist. Her paintings of Australian scenery sell for $50,000 to $100,000 each. She sells at least one painting a month to buyers in Australia and overseas. Her paintings are highly sought after and she uses only premium paints and canvasses for her paintings. She purchases these items at a large local retailer.

Advise Audrey as to her GST consequences arising out of the above information.

Answer 1

If the turnover of entity exceeds 20 lakhs (unless the entity is regstered under specified states where the threshold limit for turnover is Rs.10 lakhs)then the entity needs itself to get registered.

Therefore, once if the turnover of Audrey exceeds Rs.20 lakhs, then he needs to get himself registered and once registration is done then on every sale of painting GST needs to be charged @12% from customers and after setting off the input tax credit from the output liability, balance needs to be paid to the government.