Hi,
The threshold for GST for entities is 20L, and in case of entities below the threshold, though there is no need of registering with GST, dealing with other entities (with GST ) enforces them to register for GST. In these cases, which normally is voluntary registraton, it is not fair that these kind of entities are made to pay GST , irrespective of the threshold limit.
Please let me know if my understanding is wrong and if there is any clause which helps entities under threshold limit to get waiver on GST.
Regards
Nishi/Jabira
GST Registration Required for Entities Below 20 Lakhs Threshold in Inter-State Business or Voluntary Registration Situations An individual inquired about the GST implications for entities below the threshold limit of 20 lakhs, questioning the fairness of mandatory GST registration when dealing with registered entities. Responses clarified that while such entities are typically exempt from GST, engaging in inter-state sales or services, or opting for voluntary registration, negates this exemption. Registered entities often encourage others to register to claim Input Tax Credit (ITC). Unregistered suppliers require registered recipients to generate tax invoices and pay tax under the Reverse Charge Mechanism (RCM). Consequently, registration is necessary for interstate business, and transactions with registered dealers are recommended. (AI Summary)
TaxTMI 
TaxTMI 
