Reg but Bellow 20,00,000

[Kishan Barai]

What if a person is Registered under GST & has a turnover of Bellow 20,00,000 ??

Shall he has to charge CGST & SGST from Customer ??

Shall a person will get deduction of Expense like light bill or other expenses like Stationery etc from his Income.

Please elaborate.

Thank You

[KASTURI SETHI]

Dear Sir,

Pl. go through Q.No.18 of FAQ published published by CBEC in the newspaper dated 28.6.2017 which is as under:-

Q.No. If I register voluntarily though turnover is less than 20 lakhs, am I required to pay tax from First supply I make post GST registration ?

Ans. Yes, you would be treated as normal taxable person.

Board has also given Disclaimer : Replies are only for educational and guidance purpose and do not hold any legal validity. This denies threshold exemption but at the same Board says it has no legal validity.

This makes situation fluid. It needs clarification from Board. However, logically as well as legally threshold exemption below turnover of ₹ 20,00,000/- is substantive right of the assessee.

[Preeti Sharma]

Hello Mr.Kishan,

If a person has turnover less than ₹ 20,00,000/-, then he is not required to get registered under GST. But there is no bar on voluntary rgst. If u are voluntary registered under GST,then you have to charge CGST & SGST from customer, it does not matter that your turnover is less than ₹ 20,00,000/-. But yes, if you are registered then you have a benefit that you can avail ITC on receipt of supplies of goods/services.

And the question about deduction of expenses in income is a matter of Income Tax, it has no relation with GST.

[KASTURI SETHI]

Thanks to Ms.Preeti Sharma for perfect and convincing clarification/reply and for enrichment of my knowledge.

[Preeti Sharma]

Its my pleasure Mr. Kasturi Sethi that i could give a little knowledge to you.

Thanks

[Kishan Barai]

Thank You Very Much

[Ramesh Kothari]

1.Yes u will become taxable person even if below thresh hold limit and chargeable to tax

2. u will eligible to get the ITC as per the frame rule under GST as applicable

 

AI Summary

Voluntary GST Registration: Charge CGST & SGST, Avail ITC, Taxable from First Supply Despite Threshold Exemption A discussion forum addressed a query about GST registration for individuals with a turnover below 20,00,000. It was clarified that while registration is not mandatory below this threshold, voluntary registration requires charging CGST and SGST. Voluntary registrants can avail Input Tax Credit (ITC) on received supplies. The issue of deducting expenses like utility bills pertains to income tax, not GST. Responses highlighted that despite the threshold exemption, voluntary registrants are treated as taxable persons, necessitating tax collection from the first supply post-registration. The discussion also acknowledged the need for further clarification from the tax board.