Have VAT but not Service registration, After migration do I need to apply separately?

[Guest]

Hi,
I am a trader and have VAT registration. I was planning to get the service tax registration but didn't do it because of GST being rolled out soon.

After I will be migrated to GST, do I have to file any separate document in order to expand my business activity by including services along with existing trading activities or I can just simply start rendering services and charge service tax as applicable under GST law?

[KASTURI SETHI]

When you are migrated to GST, you supply the goods and services both. Registration is meant for goods and services both. No separate document is to be filed. Down load a fresh specimen of invoice. GST return is monthly. If supply is within State and turnover for last year is less than ₹ 20 lakhs( for some States ₹ 10 lakhs) you are eligible threshold exemption limit. Registration is required only when you cross ₹ 20/10 lakhs.

[Guest]

Thank you very much. That was very helpful.

[Ravikumar muthusamy]

To my understanding once taken GST regn there is no threshold exemption. Kindly clarify sir

[KASTURI SETHI]

Sh.Ravi Kumar Ji,

I do not agree with you. After taking registration you do not forfeit the right of threshold exemption limit.

[Ravikumar muthusamy]

Should dealer raise bill of supply instead of Tax invoice and also does he need to mention anything like Below Threshold limit of 20lakhs TO like composition dealer has to mention in his bill COMPOSTION SCHEME DEALER ?

Also his cost price would be high as he is not availing ITC and his B2B buyers may avoid him if he is not issuing tax invoice. In case he has B2C buyer only then he can opt for Composition scheme .

Kindly also confirm if there is any clause to file his below TO in the monthly returns.

[KASTURI SETHI]

Sh.Ravi Kumar Ji,

I have re-examined the whole issue. If any person whose turnover is below ₹ 20 lakhs and he obtains GST registration, he has to pay GST from Re.one. This is gross injustice with small businessman.

In the light of this, your other aspects have to be examined. I shall revert soon.

AI Summary

GST registration covers goods and services and allows starting service supplies without separate post-migration application, subject to threshold rules. When migrated to GST, a VAT registrant need not file a separate application to supply services because GST registration covers both goods and services. The registrant must use the GST invoice format and file monthly returns. The statutory threshold exemption for intra state supplies remains relevant; registration is ordinarily required only when turnover exceeds the applicable State threshold. Practical questions remain about issuing tax invoices or bills of supply, disclosure of below threshold status, composition option, and the effect of registration on entitlement to the threshold exemption.