Registration and raising bill for service

[Pradeep Kumar]

A partnership firm is getting rental income from Godown. Present rent per month is ₹ 73500/-. Earlier, even though it is not under the ambit of service tax, we have registered with and now migrated to GST. Now the tenant is asking for bill with GST. Since we are making service turnover of below ₹ 20 lakhs, is it necessary to collect & pay GST??

[Himansu Sekhar]

First check your gross turnover of the form. Aggregate turnover is both taxable supply & non taxable supply. If you have other income, that will be included for the purpose of aggregate turnover.

Even if it is accepted that your turnover is less than 20 lakh, still you have been registered with GST, you will have to raise GST bill charging GST.

[Vamsi Krishna]

It is not relevant whether you fall under 20 lakhs exemption or not once you get registered with GST.

You can either surrender the Registration or can continue and issue Invoice under GST.

[NEERAJ KUMAR, RANCHI]

If you are registered with GST and your tenant is ready to pay you GST then what is your problem? Had your tenant not been ready to pay you GST, I would have suggested you that since your turn over is below 20 lakhs then surrender RC. But in present case collect GST and pay to Government.

AI Summary

Obligation to charge GST: registered suppliers must issue GST invoices and remit tax; otherwise surrender registration. A person registered under GST must issue tax invoices and collect and remit GST on taxable supplies regardless of whether aggregate turnover is below the threshold; aggregate turnover includes taxable and non taxable receipts. If a registrant wishes to avoid charging GST because turnover is below the exemption limit, the available option is to surrender GST registration through the statutory cancellation process.