BELOW 20 LAKHS SERVICE SUPPLIER ARE WITHIN STATE OR NOT

[DEBASHISH ROUT]

Sir,

If any small sub contractor (below ₹ 20 lakh) non register can supply construction service in different state if not why, if yes then the input can take service receiver from self deposit IGST ( tax under reverse charge) , the process of reverse charge discussion.

AI Summary

Unregistered subcontractors must register for GST for interstate construction services, even with turnover below 20 lakh. ITC available via IGST. A query was raised regarding whether a small subcontractor with a turnover below 20 lakh, who is not registered, can supply construction services across states under the Goods and Services Tax (GST) framework. The response clarified that for interstate supply, registration is mandatory regardless of the turnover being below 20 lakh. Additionally, the service receiver can avail of Input Tax Credit (ITC) by self-depositing Integrated Goods and Services Tax (IGST) under the reverse charge mechanism.