Reverse charge

[Guest]

Can a GST registered service provider, whose annual TO is less than ₹ 20.00 lac, raise an invoice for services provided to a GST registered client without levying GST in the invoice? Will RCM be applicable for such invoice and the service provide file GSTR1 accordingly?

Thanks.

S. M. Nadkarni

[PAWAN KUMAR]

Dear Sir,

As per my view, the GST registered service provider has to charge GST on their GST Tax invoice. If his services are taxable under RCM in that case only he cannot charge GST on Tax invoice.

[Rajagopalan Ranganathan]

Sir,

According to Section 31 (c) (3) of CGST Act, 2017 "a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed:

Rule 49 of CGST Rules, 2017 provides the details to be indicated in the bill of supply.

 

[Ganeshan Kalyani]

Once the assesse has obtained voluntary registration he has to comply under GST. He cannot opt not to charge GST on invoice . He has to charge GST and collect and remit to the government.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Ganeshan.

[Himansu Sekhar]

Once you are registered, the exemption of 20 lakhs not applicable. You will have to realise they invoices with gst.

[Himansu Sekhar]

RCM is not applicable

[Mr Rao]

Dear sir,

Once you are registered under GST, you are supposed to follow the GST law and threshold exemption does not applicable to you. I endorse the view of the experts.

[Guest]

Dear Sirs,

Thanks to all of you for the prompt help and guidance. Since it is stated that once the GST registration is obtained 'voluntarily' the exemption limit does not apply, raises a question- dos the exemption apply to unregistered entities? Considering that an unregistered entity does not need to file any returns, what could be the rationale and relevance of the exemption?

S. M. Nadkarni

[DR.MARIAPPAN GOVINDARAJAN]

As per the provisions of GST Acts and Rules, a person or an entity having annual turnover less than ₹ 20 lakhs is not required to registered under this Act and not liable to levy tax and to compliance with the provisions of the Act and Rules. You, knowingly or unknowingly registered with GST even if your turnover is less than ₹ 20 lakhs which amounts to voluntary registration and you have to comply with the provisions.

AI Summary

Registration under GST removes threshold exemption; registered suppliers must charge GST on taxable services invoices. Once a person obtains voluntary registration under GST the threshold exemption does not apply; the registered person must charge, collect and remit GST on taxable supplies and comply with invoicing and return obligations. Reverse Charge Mechanism applies only where the service is specifically made taxable under RCM. For exempt supplies or where tax is payable under a composition scheme, the supplier must issue a bill of supply in the prescribed form instead of a tax invoice.